Homebuyer booked flat for Rs 18 lakh in 2010, later finds builder sold the flats to third party: Mumbai man wins full refund with interest, penalty on developer

Homebuyer wins full Rs 18 lakh refund in Mumbai: 16 years ago in 2010, Natwar Parmar had booked a flat in a residential project in Mumbai’s Bhayandar East area. The total consideration of the subject unit was Rs 29 lakh, towards which Parmar made a payment of Rs 18 lakh. Despite receiving a substantial portion of the consideration, the builder failed to execute a registered agreement for sale.

While the developer issued an allotment letter dated August 16, 2010, it failed to provide possession to the buyer. In view of the delay, Parmar had approached Maharashtra RERA seeking relief. The authority had on April 24, 2025, ordered the relief of possession to the homebuyer.

However, several months after the 2025 order passed by MahaRERA, Parmar once again approached the regulatory authority, asking for a modification in the order by “replacing the relief of possession with the alternative relief of refund.”

Paid Rs 18 lakh for a flat, but no delivery even after 16 years: Mumbai man approaches MahaRERA

It wasn’t just the delay in possession, but what added to Mumbai-based Parmar’s worries was the revelation that the builder had already sold the subject flat(s) to a third party during the pendency of the matter. In his review application, he claimed that during execution proceedings, it has been found that the builder had already alienated the subject flats through registered instruments.

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“Flat No. 101 was sold on 14.07.2017, and Flat No. 102 was sold on 12.05.2016, which was further transferred on 20.08.2025 to subsequent purchasers,” according to the review application. Parmar added that the developer “deliberately suppressed these material facts by remaining absent during the original proceedings, thereby rendering the relief of possession legally and practically impossible.”

The court observed that “the subject flat for which an order of possession had been passed has been sold twice,” despite the builder being restrained from creating third-party right.

“Such conduct amounts to wilful disobedience of the directions of this Authority and attracts the provisions of Section 63 of the Act,” the MahaRERA order reads.

Homebuyer wins full Rs 18 lakh refund in Mumbai after no possession for 16 years

The regulatory authority pointed out that the relief of possession has become incapable of execution due to the subsequent creation of third-party rights, adding “the impugned order dated 24.04.2025 deserves to be reviewed and modified by substituting the relief of possession with the alternative relief of refund.”

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With this, MahaRERA has directed the developer to refund the amount paid by the complainants i.e. Rs 18 lakh towards the consideration of said flat purchased in the project within 60 days, along with interest.

The interest on the refunded amount shall be applicable from January 1, 2019 at the rate prescribed under Rule 18 of the Maharashtra Real Estate (Regulation and Development) (Registration of Real Estate Projects, Registration of Real Estate Agents, Rate of Interest and Disclosures on Website) Rules 2017 till the said refund is realised.

Moreover, a penalty of Rs 20,000 is also imposed upon the builder for selling the flat to third party.