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Upholding Consumer Rights: MahaRERA Orders Refund for Unfair Developer Practices in Tripathi vs. Godrej Skyline Case

Societies Registration Act

By Staff Reporter 

**MahaRERA Order Date:** April 30, 2024

**Complaint Number:** CC005000000075204

**Background:**
Devendranath Tripathi and Deeshagorasia filed a complaint against Godrej Skyline Developers Private Ltd. concerning their purchase of a flat in the developer’s project. The complainants had paid 10% of the flat’s price as a booking amount but encountered issues with the terms of the agreement for sale provided by the developer, which they found to be onerous and one-sided. They sought a refund of the booking amount and compensation for mental harassment and costs, citing violations of the RERA Act.

**Issues Raised:**
1. **Unfair and One-Sided Contract Terms:** The complainants objected to the terms of the sale agreement, describing them as arbitrary and not in compliance with the RERA model agreement.
2. **Forfeiture of Booking Amount:** Upon cancellation of the flat booking due to the unfair terms, the developer forfeited the entire booking amount, which the complainants argued was against the provisions of the RERA Act.

**Legal Proceedings and Outcome:**
The case was heard by Shri Ravindra Deshpande of MahaRERA, who considered the complaints and the responses from the developer. The developer argued that the terms were standard and previously agreed upon by the complainants, who were aware of the conditions, including the forfeiture clause.

**MahaRERA’s Decision:**
The tribunal found the terms of the agreement one-sided and in violation of the RERA Act, siding with the complainants. The developer was ordered to refund the booking amount of Rs.4,48,780 with an interest penalty if delayed beyond 30 days from the order. The order emphasized the social legislation intent of the RERA Act to protect the interests of homebuyers against unfair practices.

**Significance:**
This decision reinforces the protective framework intended by the RERA Act for homebuyers against exploitative practices by developers. It highlights the judiciary’s role in upholding consumer rights in real estate transactions, setting a precedent for transparency and fairness in developer-buyer agreements.

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