Relief for Homebuyers of Bombay Dyeing- MahaRERA Tribunal Rules on Retrospective Effects of Section-12


Status as on- 02/06/2020


In a big relief for the homebuyers of M/S Bombay Dyeing and Manufacturing Co Ltd. the MAHARERA Tribunal has ruled in the favour of the homebuyers asking the developer to refund the paid amount. Bombay Dyeing came up with a luxurious 85 storeyed skyscraper project“Island City Centre” in Wadala before the enactment of RERA in 2016.

The promoter in its detailed advertisement while booking promised numerous facilities and the due date of possession was taken as 2017. That when RERA came into picture the projects were far from completion and therefore, RERA registration was sort wherein the due date was changed to 2019.

That the buyers after project being delayed and finding no facilities granted as promised while booking took to MAHARERA Authority for refund under Section-12 and 18 of the Act. The MAHRERA Authority ruled in favour of developer and stated that Section-12 which deals with veracity of advertisement cannot apply retrospectively and thus buyers were denied refund.


The aggrieved home-buyers took to MAHARERA Tribunal challenging the denial of refund. That in a detailed order the MAHARERA Tribunal granting relief to the aggrieved home-buyers ruled that the project was registered under Section-3 of the Act and thus was governed by the obligations and duties castes upon a promoter under the RERA Act.

The Tribunal very categorically ruled that promoter or developer cheated the buyers by booking the units on a false advertisement. That as per the provision of Section-12 there are two things in case booking is done on false or misleading advertisement: –

  1. The buyer has to be compensated by the builder
  2. In case, on such pretext the buyer wishes to exit from the project the builder shall refund the entire amount along with interest and will be compensated as well.

The major point that the Tribunal discussed and ruled was that, how Section-12 has a retrospective effect and even though the project was launched and was under construction before the enactment of RERA.

The developer has been asked to refund the amount taken along with statuary interest as prescribed under MAHARERA Rules.



Such sound order by the MAHARERA Tribunal is big relief not only for homebuyers of this particular project but also for thousands of homebuyers across nation. That MAHARERA since inception has been very progressive in implementing various RERA provisions and such ruling will only further the cause of justice for homebuyers.


Disclaimer – The above article is based on interpretation of the related judicial pronouncement and related laws which may differ person to person. The readers are expected to take expert opinion before placing reliance on it. For more information, please reach us at or call us at 8383011629

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