MahaRERA Orders Lodha to Refund NRI Homebuyers' Booking

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Lodha Developers (formerly Macrotech Developers) to refund the booking amount to NRI homebuyers who cancelled their reservation after being unable to secure a home loan for a Rs. 2.27 crore apartment in their Lodha Mulund project in Mumbai.

The couple had paid Rs. 7 lakh upfront, 'relying' on the developer’s oral assurance that the amount would be fully refunded if their loan application failed. After informing Lodha of their loan rejection and requesting cancellation, they were allegedly denied the refund, prompting them to approach MahaRERA, which has now ruled in their favour.

• MahaRERA orders Lodha Developers to refund NRI homebuyers’ booking amount.
• Loan-dependent purchase rejected; oral refund assurance cited by buyers.
• Case highlights increasing homebuyer protection under MahaRERA.

The two homebuyers, Vaibhav Kishor Ambukar and his wife Seema Ambukar, had booked a flat in “Lodha Mulund Project Tower 1” by paying a booking amount of Rs. 7 lakh in two instalments in September and October 2021. The couple, residing abroad (Russia at the time of booking), made it clear at the time of booking that their ability to buy the flat was contingent upon securing a home loan.

Also Read: MahaRERA Hits 50K Project Registrations, Leads India's Real Estate Regulation Drive

According to the homebuyers, Lodha’s representatives had orally assured them that in case of loan rejection or a financial emergency, the booking amount would be refunded without deductions. However, after the loan application was rejected in November 2021, due to documentation challenges and the complainant’s contractual employment abroad, Lodha allegedly refused to cancel the booking or process a refund.

Sanjay Chaturvedi, a Mumbai-based lawyer whose firm represented the homebuyers in MahaRERA, said, "The delivery of the home is always with the developer, and he can sell it either to the first buyer or any successive buyer. Then why deduct or forfeit any token amount? Such practices discourage honest homebuyers and are bad for the industry. This is a very well-adjudged order."