Maharashtra's Real Estate Regulatory Authority (MahaRERA) has ruled a unilateral cancellation clause in a Pune project illegal and ordered the developer to pay interest for delayed possession. The decision strengthens buyer protection under the RERA Act.

Key Takeaways

  • Unilateral cancellation clause declared illegal
  • Interest payable from Oct 1 2023 for delayed possession
  • Developer must form a cooperative housing society

MahaRERA issued a landmark order against Nirmiti Vastu Creation LLP, finding Clause 7(G) of the sale agreement in violation of safeguards under the Real Estate (Regulation and Development) Act (RERA). The clause allowed a builder’s employee, acting as the buyer’s Power of Attorney holder, to unilaterally cancel the allotment.

Historical Background

Enacted in 2016, the RERA Act introduced transparency and buyer‑centred protections across India’s real‑estate sector. Maharashtra’s regulatory body has been at the forefront of enforcing these provisions, targeting unfair contractual terms like the one struck down today.

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Homebuyer Hemant Ashok Gade booked a flat in August 2021, paying ₹42.65 lakh of the total ₹44.90 lakh price. The agreement promised possession by September 30 2023, a deadline the developer missed.

Why This Matters

BozokMedia analysis shows that this ruling will curb developers from inserting one‑sided termination clauses, bolstering confidence among buyers and investors. It also reinforces the need for clear, enforceable contracts in pre‑sale transactions.

Legal experts warn that unilateral cancellation clauses undermine buyer protection under RERA.

The authority ordered the developer to pay interest from October 1 2023 until lawful physical possession is handed over with a valid Occupancy Certificate. Additionally, MahaRERA directed the formation of a cooperative housing society under Section 11(4)(e) of the RERA Act and awarded ₹20,000 towards litigation costs.

Did You Know?: Pune’s real‑estate prices surged by over 30% between 2020 and 2025, making it one of the hottest investment hubs in India.

Frequently Asked Questions

Q1: What does this RERA order mean for homebuyers?
A: It protects buyers from unfair contract terms and guarantees monetary compensation for delayed possession.

Q2: Can the developer appeal the decision?
A: Yes, the developer has a two‑month window to file an appeal with the higher court.