In an order that significantly reshapes the balance between homebuyer relief and developer rights, the Maharashtra Real Estate Appellate Tribunal (MahaREAT), Mumbai, has allowed homebuyers to withdraw refund amounts ordered by MahaRERA—but with a crucial condition: if the promoter ultimately succeeds in appeal, the homebuyers will have to return the money along with interest.
The ruling came in Miscellaneous Application Nos. 923 of 2025 and 925 of 2025 (Stay), arising out of appeals filed by Rare Townships Pvt. Ltd., and was pronounced on 6 January 2026 by a bench comprising Justice S. S. Shinde (Chairperson) and Shri Shrikant M. Deshpande (Member – Administrative).
Background of the Dispute
The dispute concerns a long-delayed residential project in Ghatkopar (East), Mumbai, where homebuyers Mitul Harakchand Gada and Vinal Gada had booked flats as far back as 2012. An Agreement for Sale was executed on 2 November 2015, fixing the possession date as 31 December 2018.
When possession was not delivered even after the stipulated date, the buyers approached MahaRERA in July 2019, seeking refund of the amounts paid along with interest and compensation.
MahaRERA’s Order
By an order dated 9 September 2025, MahaRERA partly allowed the complaints and directed the promoter to:
- Refund the entire amount paid by the allottees
- Pay interest on the refunded amount
- Complete payment within 30 days
- Grant the promoter limited benefit of the COVID-19 moratorium period, as per MahaRERA notifications
Aggrieved by this order, the promoter filed appeals before the MahaRERA Appellate Tribunal, along with applications seeking a stay on execution of the refund direction.
Deposits Made Pursuant to High Court Orders
A critical factor in the Tribunal’s decision was that the promoter had already deposited 100% of the ordered amount, in compliance with directions issued earlier by the Bombay High Court in Writ Petition Nos. 7636 and 7637 of 2021.
Pursuant to the High Court’s orders:
- Over ₹3.30 crore was deposited
- The amount was transferred via NEFT to MahaRERA
- The High Court had directed that the money remain with the Regulatory Authority and be subject to final outcome of the proceedings
This meant that the buyers’ refund amount was fully secured.
Arguments by the Promoter
The promoter argued that:
- If execution of the refund order was not stayed, the appeals would become infructuous
- The delay in possession was covered by force majeure clauses in the Agreement for Sale
- MahaRERA failed to independently examine contractual terms and relied mechanically on earlier orders
- Since the full amount was already deposited, buyers would not suffer prejudice if disbursement was deferred
Arguments by the Homebuyers
The allottees strongly opposed the stay, pointing out that:
- They have been waiting for refunds since 2019
- They continue to pay EMIs on home loans
- The possession date had expired well before the COVID-19 period
- The promoter obtained repeated stays and prolonged litigation
- The deposited amount should be released immediately, with interest
They also sought directions that interest for the post-deposit period and statutory charges such as stamp duty be included.
Tribunal’s Key Observations
After reviewing the record, the Tribunal made several crucial observations:
- The entire refund amount is already deposited, securing the buyers’ claim
- The flats were booked in 2012, and possession was due in 2018
- Homebuyers have been deprived of both homes and money for several years
- Keeping buyer funds locked indefinitely while appeals are pending would be unfair and inequitable
- At the same time, the promoter’s arguments on force majeure and contractual extensions require full adjudication at the appeal stage
The Conditional Relief: Refund with a Reversal Clause
Striking a balance between competing equities, the Tribunal passed a middle-path order:
- Homebuyers are allowed to withdraw the refund amount deposited with MahaRERA
- However, they must file an undertaking stating that:
- If the promoter succeeds in the appeal
- The buyers will return the withdrawn amount along with interest to the Tribunal
- The promoter is protected from any further recovery beyond the amount already deposited
In effect, the Tribunal ensured immediate liquidity relief to buyers, while safeguarding the promoter’s rights in case the appeal succeeds.
Why This Order Matters
This ruling is significant because it:
- Recognises the financial distress of long-waiting homebuyers
- Avoids rendering developer appeals meaningless due to irreversible execution
- Introduces the concept of “conditional refund” in RERA litigation
- Signals that refund orders are not always final until appeals are decided
- May influence future cases where large sums are deposited pending appeal
For homebuyers, the message is clear: refunds can be accessed, but they may not be permanent. For developers, the order reinforces that statutory deposits can shield against coercive recovery, even while buyers get interim relief.
Also Read: MahaRERA Appellate Tribunal Rejects Developer’s Appeal Over Delay in Filing
