Mumbai Man Gets ₹18 Lakh Refund After 16-Year Wait, MahaRERA Penalises Builder For Selling Flats To Third Parties

Mumbai: A Mumbai homebuyer who waited nearly 16 years for his flat has won a full refund of Rs 18 lakh, along with interest, after the developer sold the property to third parties.

The Maharashtra Real Estate Regulatory Authority (MahaRERA) also imposed a penalty of Rs 20,000 on the developer for creating third-party rights despite its directions.

Flat Booked

Natwar Parmar booked a flat in a residential project at Bhayandar East in 2010. The total price of the property was Rs 29 lakh, of which he paid Rs 18 lakh to the developer.

Although the builder issued an allotment letter on August 16, 2010, it did not execute a registered agreement for sale. Possession of the flat was also not handed over.

After waiting for several years, Parmar approached MahaRERA. On April 24, 2025, the authority directed the developer to give him possession of the property.

Flats Resold

However, Parmar later discovered during the execution proceedings that the developer had already sold the flats to other buyers through registered documents.

According to his review application, Flat No. 101 was sold on July 14, 2017. Flat No. 102 was sold on May 12, 2016, and was subsequently transferred again on August 20, 2025.

Parmar argued that the developer had deliberately hidden these important facts by remaining absent during the original proceedings. As a result, the earlier order granting possession could not be implemented.

Order Modified

MahaRERA observed that the flat covered by its possession order had been sold twice. This happened even though the developer had been restrained from creating third-party rights in the property.

The authority said the developer’s actions amounted to wilful disobedience and attracted provisions under Section 63 of the Real Estate (Regulation and Development) Act.

Since possession had become legally and practically impossible, MahaRERA agreed to review its April 2025 order. It replaced the relief of possession with a full refund.

Refund Ordered

The developer must refund Parmar’s Rs 18 lakh within 60 days. Interest will apply from January 1, 2019, at the rate prescribed under Rule 18 of the Maharashtra RERA Rules, 2017, until the payment is fully realised.

MahaRERA also imposed a Rs 20,000 penalty on the developer for selling the property to third parties.