In yet another instance of the Maharashtra Real Estate Appellate Tribunal (MREAT) overturning a MahaRERA order, the Appellate Tribunal has delivered a sharp blow to Pune-based Garnet Construction Pvt Ltd and its directors. The Tribunal heavily modified the Authority’s decision and ordered the promoter to refund the amounts paid by four NRI families with interest calculated right from their payment dates in 2006-07 — not from 2017 as MahaRERA had limited it to.
The allottees — families residing in London and Nairobi — had invested in luxury bungalows in the “Crystal Springs Residences” project at Village Karla, Tal. Maval, Dist. Pune. After waiting nearly two decades without possession, they have now secured stronger relief from the higher forum.
Here is the chronological sequence of events:
- In 2006-2007, the NRIs booked bungalows in the project based on the promoter’s representations.
- They paid the full consideration amounts ranging from ₹29 lakh to ₹32 lakh per bungalow.
- The Agreements for Sale promised possession by 31 October 2007 or 31 December 2007 and explicitly provided for full refund with 9% interest if the promoter failed to deliver possession for any reason.
- Possession was never handed over. The project faced severe delays and legal complications over the years.
- In July 2016, the Hon’ble Supreme Court imposed a status quo order that stalled progress further.
- In 2017, the promoter registered the project on the MahaRERA portal and declared November 2017 as the proposed date of completion.
- In 2022, the frustrated allottees filed complaints before MahaRERA seeking refund and interest.
- On 22 November 2022, MahaRERA allowed the allottees to withdraw from the project and directed refund of the paid amounts along with interest — but restricted the interest start date to 1 December 2017.
- Aggrieved by the limited interest period, the allottees filed appeals before MREAT in 2023.
- Arguments were heard on 13 March 2026.
- On 27 March 2026, the Tribunal pronounced its judgment via video conference.
In a well-reasoned order delivered by Dr. Rajagopal Devara (Member – Administrative) and concurred by Shri Shriram R. Jagtap (Member – Judicial), the MREAT made strong observations while partly overturning the MahaRERA order:
- The promoter remains liable under Section 18 of the RERA Act even when delay occurs due to circumstances beyond control, such as court stays or litigations.
- Allottees enjoy an unqualified and unconditional right to claim refund with interest from the date the promoter actually received the money, as defined under Section 2(za) of RERA.
- Starting interest only from December 2017 was legally incorrect and contrary to Supreme Court precedents like Imperia Structures Ltd. v. Anil Patni.
- Clauses in the agreement mentioning ongoing litigations cannot override the statutory protections available to homebuyers under RERA and MOFA.
- The fact that the buyers were NRIs possibly intending to rent out the properties does not dilute their rights.
Final directions issued by MREAT after overturning the interest portion of the MahaRERA order:
- The promoter must refund the entire amount paid by each allottee.
- Interest must be paid at SBI MCLR + 2% per annum from the respective dates of payment in 2006-2007 until actual realization of the money.
- The promoter must also pay ₹10,000 as costs to each allottee.
It is important to note that the promoter had not challenged MahaRERA’s direction for refund, meaning they had accepted their basic liability. The dispute was limited to the start date of interest, which the Tribunal has now corrected strongly in favour of the homebuyers.
This latest case of MREAT overturning (or significantly modifying) a MahaRERA order once again highlights the importance of the Appellate Tribunal as a corrective forum for homebuyers. It sends a clear message that developers cannot use external factors or project registration dates to deny buyers interest on their money from the very beginning. For thousands of stalled projects in Maharashtra, especially those affecting NRI investors, such rulings reinforce that homebuyers cannot be forced to wait indefinitely while promoters enjoy the benefit of their funds.
Also Read: Homebuyers Can Face Jail Too for Disobeying MahaRERA Tribunal Orders?
