Landmark Relief for Homebuyers
In a significant ruling that strengthens the rights of homebuyers, the Maharashtra Real Estate Appellate Tribunal (MREAT) has stayed a MahaRERA order that had reversed earlier refund reliefs granted to flat buyers. The tribunal held that RERA’s review powers cannot be used to alter substantive orders, such as refund and interest directions, once already decided.
Case Background
Several homebuyers, including Ashrafuz Zaman Sheikh, Anvesh Kumar, and Saurav Mimani, had approached MahaRERA in 2021 seeking a refund of payments made for flats in SD SVP Nagar Redevelopment Pvt. Ltd., along with interest and compensation.
In April 2022, MahaRERA ruled in their favour, directing the promoter to refund the amounts with interest and imposing a ₹5,000 per day penalty for non-compliance.
However, in February 2025, MahaRERA set aside its own refund order by entertaining review applications filed by the promoter and restored the complaints for fresh hearings — a move that effectively stripped homebuyers of their earlier relief.
Homebuyers’ Argument
The buyers argued before the appellate tribunal that:
- Section 39 of RERA only allows review to correct “mistakes apparent from the record”, not to overturn final substantive reliefs.
- The promoter should have filed an appeal, but instead used review proceedings to circumvent the mandatory pre-deposit requirement under Section 43(5) of RERA.
- Parallel hearings of restored complaints alongside appeals would cause harassment, multiplicity of litigation, and financial burden.
Promoter’s Defence
The promoter countered that:
- Flats already had an occupation certificate in 2019 and possession was offered.
- Buyers defaulted on payments, leading lenders to seize the flats.
- Homebuyers were attempting to misuse RERA to avoid obligations while enjoying an “EMI-free” period.
- The impugned order merely restored complaints and caused no real prejudice.
Tribunal’s Findings
After examining Section 39 of RERA and MahaRERA Regulations 2017, the tribunal concluded:
- Review powers are limited to clerical or factual errors, not reversal of core reliefs.
- By recalling the April 2022 refund order and restoring the complaints, MahaRERA went beyond its powers.
- The February 2025 review order is prima facie unsustainable and must be stayed to prevent “multiplicity of litigation” and protect homebuyers from prejudice.
The Order
On 21st August 2025, the appellate tribunal ruled:
- The impugned MahaRERA order of 18.02.2025 is stayed.
- The stay will remain until the final disposal of homebuyers’ appeals.
Why This Matters: A Precedent for Homebuyers
This ruling sets a crucial precedent:
- MahaRERA cannot undo its own refund orders via review; promoters must file appeals and comply with pre-deposit norms.
- It strengthens homebuyers’ position against delaying tactics by developers.
- It clarifies that Section 39 review is not a backdoor appeal mechanism.
For thousands of homebuyers locked in refund battles, this decision provides a shield against promoters exploiting procedural loopholes to delay payouts.
Also Read: MahaRERA Appellate Tribunal Rejects Developer’s Appeal Over Delay in Filing
