Homebuyer Wins Refund Case Against Godrej: RERA Rights Explained

Buying a home is a big deal for most people, but it can be super expensive, especially in places like Mumbai. So, when Ajit Dabhade decided to buy a home near Mumbai for Rs 92 lakh, he put down Rs 5 lakh as a deposit on June 22, 2019. But then, on August 6, 2019, he got a letter from Godrej Properties saying he got the home. However, two days later, he changed his mind and decided not to go through with the purchase.

Dabhade asked for his deposit back, but Godrej Properties rejected the request. They said they were keeping the whole Rs 5 lakh. Dabhade wasn't having it, so he took Godrej Properties to court, saying they broke the rules of the Real Estate Regulatory Authority in Maharashtra.

Dabhade said Godrej Properties tricked him with special offers, making him think everything was good. But then, when he wanted to back out, they said he had to give up his deposit. He also said they promised him a loan for stamp duty and registration charges but didn't follow through, breaking more RERA rules.

Godrej Properties fired back, saying Dabhade knew what he was signing up for and willingly signed the contract. They said the contract stated that if a buyer cancels, they lose their deposit.

But the court sided with Dabhade. They said he paid over 5% of the home's total cost as a deposit, so Godrej Properties couldn't keep it all. They ordered Godrej Properties to give back the money, minus 2% of the home's total cost.

This decision was based on a rule from 2022 by MahaRERA, which said builders can only keep up to 2% of the home's cost if a buyer cancels. Even though this rule came after Dabhade's case, the court said it still applied.

Experts say this case shows the importance of RERA laws in protecting homebuyers. If a builder doesn't fulfill their end of the deal, RERA says the buyer should get their money back, with interest.

So, can builders legally keep your deposit if you cancel? It depends on the RERA laws in your state. In this case, Dabhade got his money back because of a new rule. But before that rule, things might have been different.

Experts say RERA laws are crucial for protecting buyers. If a builder doesn't follow the rules, buyers have the right to get their money back, plus interest. This case shows how important it is for RERA to keep updating its laws to protect buyers.