Homebuyer Default Archives - Square Feat India https://squarefeatindia.com/tag/homebuyer-default/ Real Estate News Website Fri, 29 May 2026 06:25:35 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://squarefeatindia.com/wp-content/uploads/2019/12/squrefeatindia_favicon.png Homebuyer Default Archives - Square Feat India https://squarefeatindia.com/tag/homebuyer-default/ 32 32 Builder Drags Homebuyers to MahaRERA for Non-Payment, Gets Flats Cancelled & Money Forfeited https://squarefeatindia.com/builder-drags-homebuyers-to-maharera-for-non-payment-gets-flats-cancelled-money-forfeited/ Tue, 02 Jun 2026 02:20:00 +0000 https://squarefeatindia.com/?p=12819 Pune developer Gera Developments dragged two homebuyers to MahaRERA for non-payment of installments. The authority cancelled both agreements but allowed the builder to forfeit only 2% instead of the demanded 10% plus charges.

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]]> In a notable order, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has allowed Pune-based developer Gera Developments Private Limited to cancel two apartment bookings in its project “Gera’s Planet of Joy IV” due to repeated non-payment by homebuyers. While the authority upheld the cancellations, it significantly reduced the amount the builder could forfeit.

MahaRERA Member Ravindra Deshpande, in the order dated 07 May 2026, ruled that the Agreements for Sale stand terminated, but restricted the forfeiture to only 2% of the total unit cost — far lower than the nearly 10% plus additional charges (interest, brokerage, and GST) that the developer had demanded.

Cases in Detail

Gera Developments filed two complaints:

  1. CC005000000269618 – Against Mr. Prem Prakash Singh & Mrs. Priyanka Singh for Unit 1201 (12th Floor, F1 Tower). Agreement registered on 11 March 2022.
  2. CC005000000279748 – Against Mr. Ganesh Uttamrao Dhamdhere for Unit G04 (Podium Floor, F1 Tower). Agreement registered on 04 October 2022.

The developer claimed the buyers repeatedly defaulted on installments despite multiple reminders and legal notices issued in 2023. The company invoked Clause 36 of the Agreement and formally terminated both deals.

Builder’s Demand vs RERA Decision

Gera Developments wanted to forfeit around 10% of the basic sale price along with interest, brokerage, and GST components. This would have allowed them to retain over ₹12 lakh in one case and over ₹11.6 lakh in the other.

However, MahaRERA held that while the cancellations were justified due to breach of contract and violation of Section 19(6) of the RERA Act, excessive forfeiture is not permissible. Citing its earlier Order No. 35/2022, the authority limited forfeiture to a reasonable 2% of the total unit cost in both matters.

The builder has been directed to refund the remaining amount paid by the buyers after deducting the 2% forfeiture. The developer must also bear the expenses of executing and registering the cancellation deeds.

Next Steps

The homebuyers have 60 days to execute the Cancellation Deeds. If they fail to do so, Gera Developments can file a non-compliance application under MahaRERA Circular No. 50/2025.

The allottees remained absent during the hearings, which strengthened the developer’s case on the issue of cancellation.

Industry Takeaway

This ruling highlights MahaRERA’s balanced approach — supporting developers against chronic defaulters while preventing unfair profiteering through excessive penalties. The project “Gera’s Planet of Joy IV” is registered under MahaRERA No. P52100031876.

Also Read: MahaRERA Told Homebuyers to Cooperate. Tribunal Tells Builder to Pay Up

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