By Arosh John, Founder, John Real Estate (MahaRERA Reg. No. A51700001835) | Editor-in-Chief, Thane Real Estate News (TREN)
Mumbai | 25 January 2026
The Case Snapshot
MahaRERA has directed the promoters of Kalpataru Yashodhan, Andheri West to refund over ₹1.40 crore to homebuyers Hina and Sanjay Choksi, along with interest at SBI’s highest MCLR + 2%.
The buyers booked a flat worth over ₹7.12 crore in 2017 and paid over ₹1.46 crore (about 20%). The promoter promised possession on or before December 2018. The promoter later forfeited the entire amount in February 2020, and the same flat was sold to a third party. The order was passed by MahaRERA Member Ravindra Deshpande.
5 Lessons for Mumbai–Thane Buyers and Developers
1) The 10% Collection Cap Is a Hard Compliance Line
A promoter cannot collect more than 10% of the consideration without executing the agreement for sale. When collections cross that threshold, the risk becomes regulatory, not just commercial.
Buyer discipline
- Stop payments beyond 10% until the agreement is executed and registered.
Developer discipline
- Put a strict internal control in billing and receipting. Do not accept beyond 10% without agreement execution.
2) Lack of an Agreement Does Not Remove Buyer Protection
Some disputes begin with a dangerous assumption: “No agreement, no enforceability.” In practice, once a promoter allots a unit for consideration and accepts money, the buyer’s protection does not vanish because the promoter failed to execute the agreement.
Buyer discipline
- Preserve the entire allotment trail: booking form, receipts, demand letters, emails, and payment schedule.
Developer discipline
- Treat agreement execution as a core compliance milestone. Close it early and document it cleanly.
3) Demand Letters Must Follow Contract Triggers, Not Cashflow Needs
Disputes escalate when demand letters do not match the agreed payment triggers. In this case, the order records that the buyers had to pay the balance only after the Occupation Certificate, yet demands were raised earlier.
Buyer discipline
- For every demand, ask one question: “Which contractual milestone triggered this, and what is the supporting proof?”
Developer discipline
- Align every demand to the contract trigger and milestone evidence. Keep the paper trail audit-ready.
4) Forfeiture Must Be Proportionate and Defensible
Forfeiture is not a free hand. When a promoter forfeits large sums—especially beyond the 10% band—MahaRERA can test it on fairness and conduct. That risk increases when delivery timelines and compliance discipline come under scrutiny.
Buyer discipline
- If the builder issues cancellation or forfeiture, respond in writing immediately. Ask for the legal and contractual basis and the computation.
Developer discipline
- Use proportionate, consistent, and contract-aligned forfeiture logic. Avoid “all-or-nothing” positions that fail equity tests.
5) Reselling a Disputed Unit Can Multiply Exposure
Once a promoter sells the same unit to a third party, retaining the original buyer’s money becomes far harder to defend. It creates a clean regulatory narrative: money retained plus resale benefit.
Buyer discipline
- If you suspect resale, document it and place it on record quickly through written communication.
Developer discipline
- Before any resale decision, ring-fence the dispute exposure. Treat the inventory as a legal-risk asset until closure.
Practical Checklist Before You Pay the Next Instalment
Homebuyers
- Do not pay beyond 10% unless the agreement for sale is executed and registered.
- Maintain one dispute-ready folder: booking form, receipts, demands, allotment emails, possession promises, and key correspondence.
- Challenge premature demands by email with date references and clear questions.
- If forfeiture is threatened, demand a reasoned written note and refund computation.
Developers
- Implement a “10% lock” in billing, collections, and receipting workflows.
- Standardise demand letters with milestone basis and supporting evidence references.
- Use fair, proportionate cancellation and refund frameworks across cases.
- Avoid resale of disputed units without closing the liability trail.
Closing View
This order delivers a simple operational message to the Mumbai–Thane market: process discipline reduces liability. Agreement execution, milestone-linked demands, and fair cancellation conduct are no longer back-office details. They materially shape outcomes in high-ticket disputes.
Also READ: MahaRERA Compliance Heading into 2026: The Buyer’s Safety Upgrade
Also READ: Buyer’s Guide (MahaRERA): How to Evaluate a New Project in Maharashtra
About the Author
Arosh John is the Founder of John Real Estate (MahaRERA Reg. No. A51700001835) and Editor-in-Chief of Thane Real Estate News (TREN). With over a decade of on-ground advisory across Thane and the wider Mumbai Metropolitan Region, he specialises in premium resale, villa transactions, and NRI-led acquisitions. Arosh is known for translating RERA enforcement, contract structure, and project governance into practical decision frameworks for end-users and investors—so buyers protect downside risk and developers strengthen compliance-led execution.
Disclaimer
This article is published for general information and market awareness. It summarises publicly reported details of a MahaRERA refund order and discusses general RERA compliance principles. It does not constitute legal advice, does not create a professional-client relationship, and should not be relied on as a substitute for case-specific guidance. Readers should verify facts against project documents and the relevant order record, and obtain independent legal and financial advice before taking action.
