Mumbai: In a significant win for homebuyers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed real estate major Lodha Group— Macrotech Developers Ltd—to refund Rs 6.65 lakh to a couple who were unable to proceed with their flat booking due to a rejected home loan.

The complainants had booked a flat (No. 1503) on September 26, 2021, in a Lodha project for a total consideration of Rs 2.26 crore. They paid a booking amount of Rs 7 lakh in two installments. However, their home loan application was declined, and they notified the developer of their intent to cancel the booking and requested a refund.

Despite the timely communication and citing financial hardship, the developer refused to refund the amount, citing a Clause of the booking application form, which permits forfeiture of up to 10% of the total consideration in case of cancellation.

MahaRERA, in its detailed order dated June 2025, rejected Lodha's reliance on this clause, terming it "one-sided, unconscionable, and unenforceable". The Authority observed that the agreement had not been fully executed and that the complainants had merely signed a booking application—some pages of which bore incomplete signatures and lacked dates or explanations of terms.

Furthermore, MahaRERA highlighted that the complainants had expressed, even before signing, that their ability to purchase the property was contingent on home loan approval. The Authority noted that the developer had acknowledged this concern and assured the buyers that the booking amount would be refunded in case of loan rejection—although not documented in writing.

“The forfeiture of the amount is erroneous and against the object and purpose of the said Act, which is enacted as beneficial legislation to abate the hardship of home buyers,” said MahaRERA Member II, Ravindra Deshpande, in the order.

The Authority directed Macrotech Developers to: Refund Rs 6.65 lakh to the complainants by July 15, 2025. Pay an interest at 2% above SBI's higher MCLR if the amount is not refunded by the deadline.

Additionally, pay Rs 20,000 as cost of the complaint.

The order reinforces the regulator’s stance against exploitative contractual clauses and supports homebuyers facing genuine difficulties, particularly in pre-agreement situations.