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The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a directive to Larsen & Toubro (L&T) to deduct only 2 percent of the amount already paid and refund the balance to a non-resident Indian (NRI) homebuyer from Abu Dhabi. This decision came during the hearing of a complaint filed by the NRI homebuyer, marking the second instance of such ruling by the regulator, following a similar case involving Godrej Properties.

Background of the Case

The NRI homebuyer had booked a flat in a project developed by L&T Realty in the Kurla area of Mumbai, making an initial payment of over Rs 25 lakh out of the total cost of Rs 2.29 crore. Subsequently, L&T terminated the booking due to non-payment of the remaining balance, offering Rs 17 lakh to the homebuyer after deducting over Rs 8 lakh.

MahaRERA’s Order

In response to the complaint filed by the NRI homebuyer, MahaRERA directed L&T to refrain from deducting more than 2 percent of the paid-up amount during the termination of the booking. This decision aligns with MahaRERA’s commitment to ensuring fair practices in the real estate sector and protecting the interests of homebuyers.

Previous Instances

This ruling by MahaRERA echoes a similar directive issued to Godrej Properties earlier, where the regulator directed the deduction of only 2 percent, rather than the initially proposed 5 percent, in a case involving the cancellation of a booking by a homebuyer.

Analysis of the Case

The NRI homebuyer cited the discontinuation of a bank subvention scheme as the reason for the inability to make further payments. Despite efforts to reconcile the issue at MahaRERA’s conciliation forum, the parties failed to reach a mutual agreement on the refund amount.


MahaRERA’s directive to L&T underscores the regulator’s commitment to ensuring transparency and fairness in real estate transactions. By limiting the deduction to 2 percent and prioritizing the interests of homebuyers, MahaRERA continues to play a crucial role in maintaining the integrity of the real estate market.

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