MahaRERA Orders Godrej Properties to Refund Homebuyers in Raj Kapoor Studio Redevelopment Project

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Godrej Properties to refund payments made by six homebuyers in its Chembur-based residential project, Godrej RKS, without adding any interest. The directive pertains to the redevelopment of the former RK Studios property, a prominent land parcel once owned by the Kapoor family.

In an order dated May 29, MahaRERA instructed Godrej Properties to return the sums paid by six buyers for seven flats, in line with the contractual terms outlined in the respective agreements. The refunds are to be processed without interest, and homebuyers are required to execute cancellation deeds within a stipulated period.

Nature of the Dispute

The dispute arose when six homebuyers, who had booked a total of seven residential units in the Godrej RKS project, approached MahaRERA seeking to exit the project. Of these, five buyers had entered into formal agreements for sale, while one buyer had secured an allotment letter in 2020.

The homebuyers collectively cited financial stress and personal challenges following the COVID-19 pandemic as the primary reasons for their inability to fulfil scheduled payments. According to the complaint, they had received termination letters from the developer, indicating that the payments made towards the units stood forfeited.

Godrej Properties, in response, maintained that the project’s construction and possession timelines were met and that the termination of agreements was due to the buyers’ failure to adhere to the contractual payment schedules. The developer asserted that it was within its rights to terminate the bookings and retain a portion of the payments under the forfeiture clauses.

MahaRERA’s Findings

MahaRERA clarified that there was no delay on the part of the developer in delivering possession. The Occupation Certificate (OC) for the Godrej RKS project had been granted in December 2023, ahead of the scheduled June 2024 deadline. Therefore, the homebuyers’ claim under Section 18 of the Real Estate (Regulation and Development) Act, 2016—typically applicable in cases of delayed possession—was not found to be valid.

Further, the Authority emphasized that it could not alter existing contractual provisions between the parties. As per the terms, payments were tied to construction milestones, and the agreements clearly outlined consequences in the event of a default.

In the case of five homebuyers, MahaRERA ruled that the termination notices issued by the developer were valid and that the complainants were not entitled to any refund beyond what was stipulated in their agreements.

One homebuyer who had booked two flats was also found to be in default. However, MahaRERA directed the developer to refund the entire amount paid by this buyer—₹6.21 crore—within 60 days of the order. The homebuyer is required to cooperate and execute a cancellation deed within 30 days of receiving the refund.

Godrej Properties contended that at least one of the complainants had accepted the termination terms and had subsequently purchased a new flat in a separate project—Godrej Urban Park. On this basis, the developer argued that the earlier complaint related to Godrej RKS no longer stood valid.

It also stated that there was no enforceable contract in certain cases, particularly where no formal sale agreement had been executed. In such situations, the developer argued that the cancellation and forfeiture were in line with the original application forms signed by the buyers.

The company further pointed out that one complainant had submitted duplicate complaints, which it described as an abuse of the legal process.

In the specific case of the sixth homebuyer who had purchased two units, Godrej stated that multiple reminders had been issued to clear outstanding dues. Despite this, payments remained incomplete, leading to the termination of the booking.

Project Background

The Godrej RKS project stands on the site of the historic RK Studios, established by the late actor and filmmaker Raj Kapoor in 1948. The 2.2-acre land parcel, measuring approximately 9,655 square metres, was sold to Godrej Properties by the Kapoor family in May 2019 for about ₹250 crore. The studio had long been associated with a number of landmark Indian films.

In January 2020, Godrej Properties registered the Godrej RKS project with MahaRERA, with a targeted completion date of December 2024. The development was launched as a luxury residential scheme featuring three- and four-bedroom apartments under the “Collector’s Edition” brand. The project’s design paid homage to the Bombay Art Deco style, reflecting the architectural heritage of Mumbai’s mid-20th century urban landscape.

As per the order, the refunds—excluding interest—must be made in accordance with the agreements signed between the buyers and the developer. The Authority emphasized that any relief sought beyond the written contract, including interest on the refunded sum, would not be entertained.

Following the refund, the homebuyers are required to cooperate with the developer to complete legal formalities, including the execution of cancellation deeds. These must be signed within 30 days from the date of receiving the refund.

MahaRERA’s decision reaffirms the importance of adhering to the terms laid out in legally binding real estate contracts. It also highlights the limits of the Authority’s jurisdiction, particularly in cases where the developer has met its project obligations on time and disputes arise due to payment defaults by the buyer.

This case comes amid a larger context of increased homebuyer grievances filed before MahaRERA. According to recent data, over 29,000 complaints have been registered by buyers against approximately 5,500 projects in Maharashtra. Most disputes involve delays in possession, pricing disagreements, or requests for refunds due to personal or financial difficulties post-COVID.

Image source- maharera