MahaRERA Orders Godrej to Refund Buyers in Chembur Project

Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered Godrej Properties to refund a total of ₹6.21 crore to six homebuyers without interest. The refunds pertain to the Godrej RKS project in Chembur, developed on the iconic site of the former RK Studios.

The Authority’s decision, dated 29 May, follows a series of complaints from homebuyers who sought exit from the project citing financial and personal hardships brought on by the COVID-19 pandemic. While five of the six buyers had booked one flat each, the sixth had purchased two flats, taking the total number of cancelled units to seven. These transactions represented a collective value of ₹28.80 crore. Godrej Properties had acquired the 2.2-acre RK Studios property in 2019 to develop a high-end residential project, combining cultural nostalgia with contemporary luxury. However, as the pandemic reshaped financial realities, several buyers struggled to meet payment obligations under construction-linked plans.

MahaRERA’s order clarified that the agreements between Godrej and the buyers had not been breached by the developer in terms of possession timelines. In fact, Godrej obtained the Occupation Certificate (OC) in December 2023—six months ahead of its committed deadline of June 2024. Instead, the Authority found that the terminations initiated by the developer stemmed from buyer defaults in scheduled payments. For five buyers who had registered agreements for sale, MahaRERA ruled that there was no entitlement to refunds with interest under the Real Estate (Regulation and Development) Act, 2016. However, the Authority allowed a refund of the base amount—without interest—considering the buyers’ inability to proceed further with the purchases.

In the case of the sixth buyer, who had booked two flats through an allotment letter and not a registered agreement, MahaRERA upheld the termination issued by the developer due to consistent defaults. The Authority directed the parties to execute a cancellation deed within 30 days of the refund, which must be completed within 60 days from the date of the order. Godrej Properties, in its submission to the Authority, maintained that it was not at fault, citing buyer defaults as the sole reason for cancellations. The firm also pointed out that one of the complainants had accepted the termination and booked a home in another of its developments, making the RKS-related grievance redundant.

Additionally, the developer asserted that buyers were attempting to renegotiate contract terms and seek financial relief that the Authority is not empowered to grant under the current legal framework. One complaint, according to the company, was filed twice—an act it labelled as misuse of legal remedy. Despite its defence, Godrej has been asked to refund amounts paid by the homebuyers without imposing interest, forfeiture, or penalty. The Authority’s emphasis on respecting the terms of agreement—while recognising genuine buyer distress—sets a notable precedent for future disputes in Mumbai’s premium housing market.

This episode also reflects the broader post-pandemic shifts in consumer confidence, especially within the luxury housing segment, where construction-linked plans can become a financial strain during economic slowdowns. The buyers had cited job losses, medical expenses, and market uncertainties as factors that forced them to reconsider their investments. One buyer alleged that the developer had attempted to push a booking in another project after the termination, despite the absence of such a clause in the initial application. Others said they tried to find alternative buyers to take over their bookings but received little support from the developer, leading to delays and ultimately cancellations.

RK Studios, the land on which Godrej RKS now stands, was once the creative hub of Indian cinema. The redevelopment was seen as a blend of legacy and modern urban design. The project, launched in January 2020, offered collector’s edition apartments styled with Bombay Art Deco influences. As of now, the project remains on schedule, but the recent ruling puts a spotlight on buyer protection and the limits of contractual flexibility in large-scale developments. For the city, the decision reiterates the need for more resilient homebuying mechanisms and adaptive financing models. In an era when economic shocks can suddenly disrupt planned investments, greater attention is required toward building housing markets that are not just aspirational but also empathetic to changing buyer circumstances.

While MahaRERA’s stand was balanced—upholding the developer’s contractual rights while accommodating genuine buyer hardship—it also marks a cautionary note for developers to maintain more transparent and flexible buyer engagement, particularly in legacy redevelopment projects that attract a diverse mix of investors. As of now, all affected buyers have been instructed to cooperate with the refund process and complete necessary legal formalities within the stipulated timelines. Whether the developer chooses to reintroduce the cancelled inventory to the market or hold them back remains to be seen, but the ruling has undoubtedly reaffirmed the accountability framework that RERA has established in India’s evolving real estate ecosystem.

MahaRERA Orders Godrej to Refund Buyers in Chembur Project