MahaRERA orders Lodha Developers to refund booking amount of NRI homebuyers after home loan rejection for Mumbai project
Mumbai real estate update: The NRI couple had paid ₹7 lakh upfront for the project named Lodha Mulund, 'relying' on the developer’s oral assurance
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Lodha Developers (formerly Macrotech) to refund the booking amount to NRI homebuyers who cancelled their reservation after being unable to secure a home loan for a ₹2.27 crore apartment in their Lodha Mulund project in Mumbai.
The couple had paid ₹7 lakh upfront, 'relying' on the developer’s oral assurance that the amount would be fully refunded if their loan application failed. After informing Lodha of their loan rejection and requesting cancellation, they were allegedly denied the refund, prompting them to approach MahaRERA, which has now ruled in their favour.
The case
The two homebuyers, Vaibhav Kishor Ambukar and his wife Seema Ambukar, had booked a flat in “Lodha Mulund Project Tower 1” by paying a booking amount of ₹7 lakh in two instalments in September and October 2021. The couple, residing abroad (Russia at the time of booking), made it clear at the time of booking that their ability to buy the flat was contingent upon securing a home loan.
According to the homebuyers, Lodha’s representatives had orally assured them that in case of loan rejection or a financial emergency, the booking amount would be refunded without deductions. However, after the loan application was rejected in November 2021, due to documentation challenges and the complainant’s contractual employment abroad, Lodha allegedly refused to cancel the booking or process a refund.
Developer's defence
The developer- Lodha Group contended that the booking was governed by an application form signed on November 18, 2021, which included a clause (Clause 3.5) allowing the forfeiture of booking amounts — up to 10% of the total consideration — in case of cancellation. The developer maintained that the complainants had signed the application form after fully understanding the terms.
MahaRERA's order
The MahaRERA, in its order dated June 10, 2025, stated that no formal agreement for sale had been executed between the parties. The Authority found the forfeiture clause to be “one-sided, unconscionable, and unenforceable” and held that the refund denial violated the spirit of the Real Estate (Regulation and Development) Act, 2016.
“The complainants’ reason for withdrawal stemmed from a genuine financial crisis, not mala fide intent. The application form itself appeared partially filled and unsigned by Lodha’s sales representatives. Moreover, it was signed just nine days before the refund request was made,” the order said.
Following this, the MahaRERA ordered Lodha to refund ₹6.65 lakh to the homebuyers by July 15, 2025. The order said that if the timeline is not adhered to, the refund will attract interest at 2% above the State Bank of India (SBI)’s highest marginal cost of lending rate.
Additionally, the MahaRERA directed the developer to compensate homebuyers with ₹20,000 towards the cost of the complaint.
Meanwhile, an email query sent to Lodha Developers did not receive a response. If a response is received, the story will be updated.
Homebuyers should not rely on oral assurances
According to legal experts, homebuyers should not rely on any oral submissions or assurances by the developer or its representative.
"Homebuyers must exercise extreme caution and avoid relying on verbal promises or assurances from developers or their representatives when booking a flat, as such oral agreements lack legal enforceability under the Real Estate (Regulation and Development) Act, 2016 (RERA) and the Indian Contract Act, 1872," said Sonam Chandwani, Managing Partner KS Legal & Associates.
"A clear, written contract detailing refund policies, contingencies, and obligations is essential to safeguard against developers’ potentially unfair practices," Chandwani said.
Also Read: MahaRERA update: Maharashtra regulator surpasses 50,000 project registrations in 8 years
Sanjay Chaturvedi, a Mumbai-based lawyer whose firm represented the homebuyers in MahaRERA, said, "The delivery of the home is always with the developer, and he can sell it either to the first buyer or any successive buyer. Then why deduct or forfeit any token amount? Such practices discourage honest homebuyers and are bad for the industry. This is a very well-adjudged order."
Chaturvedi said his client was working in Russia at the time of booking and currently works in Dubai.
