In a rare ruling in support of homeowners, the Maharashtra Real Estate Appellate Tribunal (MREAT) ordered Mumbai-based Ekta Parksville Homes Pvt Ltd, a part of Ekta World, to pay back the buyers for the cost of their property. Stamp duty, registration fees, pre-EMI, interest from the date of payment, and home loan settlement expenses paid to a major lender will all be reimbursed.
The Case In Court
Homebuyers Hemal and Shibani Mehta paid ₹32.17 lakh in 2014 to reserve an apartment at Ekta Parksville, Vasai. The developer did not fulfill the agreement's requirement that possession be obtained by December 2016. Even though the couple obtained a home loan of ₹23 lakh and paid more than ₹11 lakh, they never got possession.
Attempts to Resolve Through MahaRERA: In order to obtain a complete refund, including interest, the homebuyers first went to Maharashtra's Real Estate Regulatory Authority (MahaRERA). According to the developer, the couple was offered "fit-out" ownership in 2019 after merely paying ₹8.43 lakh. But MahaRERA decided in the homeowners' favor, directing the developer to return the money plus interest starting on January 1, 2017.
Looking for More from MREAT: The homebuyers were not happy with the partial refund and therefore filed an appeal with MREAT, requesting a complete refund of ₹36.42 lakh, which comprised pre-EMI interest, registration fees, and stamp duty. As part of the HDFC Bank subvention plan, they claimed that the developer had neglected to pay the pre-EMI.
Developer’s Take: The developer stated that the COVID-19 lockout, court orders, and municipal restrictions were outside their control and that this was the reason for the delay. An occupation certificate was granted in 2023, and the project claimed to have offered fit-out possession in 2019.
MREAT's Final Judgment: The homeowners were entitled to a full refund by the Maharashtra Tribunal, which included all additional payments made, such as MVAT, stamp tax, registration fees, and pre-EMI charges. It is also required that the developer pay interest on the amount reimbursed from the date of payment until the refund is completed.
As per the order granted on February 17, 2025, the developer has 41 days to finish the refund.
Legal Implications: Nilesh Gala and Manish Gala, the homebuyers' lawyers, praised the decision as historic. It sets a major precedent for homeowners seeking refunds in cases where delayed possession occurs and additional costs, such as stamp duty and pre-EMI interest, are involved. This example shows how many customers endure long-term harm when developers fail to meet deadlines.