In a significant order that serves as a cautionary signal for homebuyers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has held that an allottee cannot claim refund of any amount paid over and above the consideration mentioned in the registered Agreement for Sale under Section 18 of the Real Estate (Regulation and Development) Act, 2016.
The order was passed on 6 August 2026 by Member Shri Ravindra Deshpande in Complaint No. CC005000000259298 filed by Prasad Ramkrushna Deshpande against M/s. Sunraj Developers (through its proprietor Mr. Jayesh Nivrutti Salunkhe). The project in question is “RAJ SAPHIRE” registered under MahaRERA Project Registration No. P52700008000.
The complainant had agreed to purchase Flat No. 202, B Wing, 2nd Floor, admeasuring approximately 606.64 sq. ft. carpet area (including balcony, enclosed balcony and terrace) for a total consideration of ₹25,60,000. The parties executed a registered Agreement for Sale on 14 March 2019. As per the agreement, possession was to be handed over on or before 31 December 2020.
The homebuyer claimed he had paid a total of ₹26,52,500 towards the flat — ₹92,500 more than the agreed consideration. Of this amount, ₹50,000 was paid in cash and the rest through RTGS, cheques and a home loan of ₹17.50 lakh taken from HDFC Bank. He had also paid stamp duty of ₹1,53,600, registration charges of ₹25,600 and claimed legal fees of ₹1,00,000.
Due to the COVID-19 pandemic, the builder sought additional time. The complainant granted a six-month extension, making the revised possession deadline 30 June 2021. Despite this, the builder failed to hand over possession. The complainant issued legal notices in March and June 2023 seeking either completion of the project or cancellation of the agreement with full refund. The builder neither replied nor delivered possession.
The complaint was filed on 18 August 2023 seeking refund of the entire ₹26,52,500 along with interest at SBI highest MCLR plus 2%, stamp duty, registration charges, legal fees, compensation of ₹2 lakh for mental and financial harassment, and monthly rent of ₹7,000 from the original possession date.
The matter was heard on 14 January 2026. The complainant was represented by a Company Secretary, while the respondent remained absent despite service of notice. The complaint was therefore proceeded ex-parte. Earlier applications for amendment and stay had already been rejected.
In its detailed order, MahaRERA observed that the complaint remained unchallenged. The Authority noted that the agreed possession date was 31 December 2020 and that even after the six-month extension granted by the buyer, possession was not delivered by 30 June 2021. Consequently, the homebuyer was entitled to withdraw from the project under Section 18 of the RERA Act.
However, on the quantum of refund, the Authority took a strict view. It held that Section 18 permits refund only of the amount received by the promoter “in respect of that apartment” as per the terms of the Agreement for Sale. The agreed consideration in the registered agreement was ₹25,60,000. Therefore, only this amount could be ordered to be refunded along with interest from the respective dates of payment at the rate prescribed under Rule 18 of the Maharashtra RERA Rules, 2017.
The Authority explicitly refused to grant refund of the excess amount of ₹92,500 paid by the complainant. It also declined to order refund of stamp duty, registration charges and other statutory payments, stating that Section 18 does not empower the Authority to direct return of amounts other than the consideration for the flat. The complainant was advised to approach the appropriate authorities for refund of stamp duty and registration charges, if so desired.
The final operative directions are as follows:
- The complainant is allowed to withdraw from the project.
- The respondent is directed to refund ₹25,60,000 with interest from the respective dates of payment at the prescribed rate within 30 days of the order.
- Upon receipt of the refund, the complainant shall cancel the Agreement for Sale; the charges for cancellation shall be borne by the respondent.
- The respondent is directed to take steps to remove the project from abeyance.
- The respondent shall pay ₹20,000 to the complainant towards costs of the complaint.
- The Authority clarified that the amount under Section 18 means only the consideration paid towards the flat, excluding stamp duty, registration charges, taxes and other similar payments made to the government.
This order underscores an important practical reality for homebuyers. While RERA provides strong protection for delayed possession and the right to exit with refund of the contractual consideration plus interest, any payment made beyond the figure mentioned in the registered Agreement for Sale does not automatically enjoy the same statutory protection under Section 18. Buyers who pay extra amounts — whether under pressure, verbal assurances or otherwise — may find it difficult to recover that excess through MahaRERA and may have to pursue separate civil remedies for recovery of money paid under mistake or unjust enrichment.
The decision also reiterates the consistent position of MahaRERA that stamp duty, registration charges and taxes paid to government authorities are not recoverable from the promoter under Section 18.
For homebuyers, the takeaway is clear: insist that every rupee paid is reflected in the registered Agreement for Sale and obtain proper receipts. Any amount paid outside the contractual consideration carries the risk of remaining unprotected under RERA’s refund provisions.
Also Read: Double Booking Costs Builder Dear: MahaRERA Orders Refund to Homebuyer in Sunteck Project
