In a notable regulatory intervention, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered Godrej Properties to refund ₹6.21 crore to six homebuyers who had invested in the Godrej RKS project in Chembur, Mumbai. The refund has been ordered without any additional interest, and comes in the wake of multiple complaints filed by the allottees following financial hardships post the COVID-19 pandemic.
The MahaRERA order, dated May 29, 2025, clarifies that although there was no delay in the project’s construction or possession timeline, refunds are being granted as per the contractual terms outlined in the signed agreements or booking documents.
Background: The Case of Godrej RKS
The Godrej RKS project is being developed on the iconic premises of RK Studios, founded by legendary filmmaker Raj Kapoor. The Kapoor family sold the 2.2-acre land to Godrej Properties in May 2019 for around ₹250 crore, and the site was reimagined as a luxury residential project with ‘Collector’s Edition’ homes inspired by Bombay Art Deco.
Six homebuyers had purchased seven flats in the project, with a total consideration value of ₹28.80 crore. However, due to the pandemic’s financial impact, the buyers were unable to adhere to the construction-linked payment schedule and sought refunds, citing personal and financial distress.
While Godrej Properties had issued termination letters between August 2021 and July 2023, the developer had not delayed possession, and the Occupation Certificate (OC) was granted in December 2023, ahead of the scheduled June 2024 deadline.
MahaRERA’s Findings and Directions
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Five out of six buyers had defaulted on payments, as per the agreed schedules in their sale agreements or booking forms. MahaRERA ruled that these contracts could not be altered, and the buyers were not entitled to interest or further compensation.
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The sixth homebuyer, who had purchased two flats, was found to have valid grounds for a refund under the contract. MahaRERA instructed the developer to refund all payments received for those two units within 60 days.
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Upon receiving the refund, the homebuyers must cooperate in executing cancellation deeds within 30 days, on a mutually convenient date.
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MahaRERA reiterated that refunds would be processed as per contract, without interest, and that the complainants were not eligible for any relief under Section 18 of the RERA Act since there was no delay from the developer’s side.
Godrej Properties’ Stand
Godrej Properties submitted that:
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One complainant had already booked another unit in a different project (Godrej Urban Park), making the previous complaint void.
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In many cases, no registered agreement for sale existed, only booking forms, weakening claims for refunds under RERA provisions.
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Multiple opportunities were given to buyers to regularize payments, which were not honored.
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The developer had incurred losses and alleged that some homebuyers were misusing the legal process, with duplicate complaints filed by one of them.
RK Studios Legacy and Project Details
The RK Studios property, measuring 9,655.10 sq. m, was a landmark in Indian cinema. After acquiring the land in 2019, Godrej Properties launched Godrej RKS in January 2020. The luxury project was designed to honor the cultural legacy of RK Films and featured premium 3- and 4-bedroom residences with heritage-inspired architecture.
With the OC received in December 2023, Godrej Properties has largely kept its project timeline intact, even amid market disruptions caused by COVID-19.
