The MahaRERA in a recent judgment passed allowed a flat buyer to pull back from a project and also directed the developer to refund the amount paid by the buyer with interest. The real estate body, in its April 22 verdict, observed, “Misrepresentation of facts in a sales brochure or advertisements luring customers, entitles flat buyers to withdraw from the project.” Experts have welcomed the decision and said that the rule of caveat emptor, meaning let the buyer beware, is also applicable for flat buyers under RERA. 

The dispute

MahaRERA was hearing a dispute after a reconciliation attempt to amicably resolve the dispute between Jignesh and Gulab Khemani (complainant) and Shree Siddhivinayak Infrastructure and Reality did not yield any result. The complainant had booked a 595-square feet flat in an upcoming project for a total consideration of over Rs 1.10 crore in Borivli and had paid around Rs 55 lakh to the developer already.