MahaRERA Orders Godrej Properties to Refund Homebuyers in Raj Kapoor Studio Redevelopment
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has mandated that Godrej Properties refund six homebuyers—who collectively booked seven flats in the Godrej RKS project—for amounts paid over time. This decision directly stems from their redevelopment of the iconic Raj Kapoor Studios in Chembur and signals a broader commitment to consumer protection in India’s real estate sector.
What MahaRERA Ordered
On May 29, MahaRERA issued an order directing Godrej to reimburse the full amounts paid by the buyers, without any interest, within 60 days. The directive also requires issuing termination notices (under Section 11(5) of RERA 2016) and mandated cancellation deed execution within 30 days of refund completion. The authority clarified that it cannot alter pre-agreed contractual terms and emphasized that the refunds must follow the original agreements. Buyers defaulting on payment schedules at various milestone stages had been previously issued termination letters between August 2021 and July 2023.
Background: The Raj Kapoor Studio Redevelopment
Godrej Properties acquired 2.2 acres of the historic RK Films & Studios from the Kapoor family in May 2019 for approximately ₹250 crore and launched Godrej RKS in January 2020. Designed as a premium mixed-use development, it includes “Collector’s Edition” residences inspired by Bombay Art Deco, with completion originally slated for December 2024. While possession and OC were reportedly granted on schedule, certain buyers faced financial hardships after the COVID-19 pandemic, leading them to seek exit via termination.
Case Details: Contracts, Defaults & Terminations
Among the six buyers Five defaulted on payments and were found not entitled to refunds under the agreements. One buyer, who had bookings for two adjacent flats, received a valid termination due to default and qualified for a refund per contractual terms. Total booking value for the project was ₹28.80 crore, with approximately ₹6.21 crore already paid to Godrej.
Perspectives from Buyers & Godrej Properties
Homebuyers raised concerns about being pressured to switch to other projects and unclear forfeiture calculations. One buyer highlighted that no formal sale agreement was executed, complicating their claims. Godrej Properties contended that termination notices and possession timelines were valid, and defaults were contractually defined. They noted that one buyer had already rebooked in another Godrej development, nullifying their claim on RKS. The builder justified the forfeiture based on agreed terms.
Broader Implications & Consumer Protection
- Contract adherence: The ruling reinforces that developers must value agreements while respecting contractual stipulations on defaults and timelines.
- Financial fairness: Refunds without interest preserve buyer investments, though they highlight the fine balance between contractual obligations and consumer protection.
- Preserving iconic legacies: Redevelopment of historic properties like RK Studios carries cultural significance—underscoring greater scrutiny and regulatory oversight.
Similar RERA Rulings: A Growing Trend
Earlier this year, MahaRERA compelled Godrej Skyline developers to refund full booking amounts—with interest—after identifying coercive clauses in the agreement. This pattern indicates growing enforcement of ethical practices in builder-buyer relationships.
Final Takeaway The MahaRERA directive on the Raj Kapoor studio redevelopment is a landmark decision illustrating the regulator’s growing will to uphold homebuyer rights. By demanding refunds without interest and enforcing proper termination steps, the order asserts the importance of contractual clarity, timely execution, and buyer protection—even within high-profile, heritage-linked projects.
