MahaRERA Orders Refund of Clubhouse Fees After Six‑Year Construction Delay

When the flat‑owner finally received the keys to his Mumbai apartment in October 2019, he was handed a glossy brochure promising a state‑of‑the‑art clubhouse. Along with the possession, he also paid a hefty ₹5 lakh as membership fees for that amenity.

Fast forward more than six years, and the clubhouse remained just a drawing on the site plan. Frustrated, the buyer approached MahaRERA, asking for a refund of the amount he’d paid – plus interest, he claimed.

The developer, meanwhile, tried to shrug it off. Their defence was that the clubhouse was part of a larger, multi‑phase redevelopment project and that its construction would only kick off once the whole layout reached a “substantial completion” stage. They also pointed out that the agreement signed in April 2018 stipulated that the clubhouse charge could be collected at possession and that a refund would only be due if the amenity was never built.

Adding to the mix, the builder blamed a slew of bureaucratic hurdles – the relocation of an existing BEST bus depot and the need for fresh statutory approvals – for the endless postponement. They insisted the project hadn’t been abandoned, merely delayed.

Looking at the paperwork, MahaRERA noted that the sale agreement did not pin down an exact deadline for the clubhouse’s completion. However, it did contain a clause stating that if the amenity was not constructed within five years of the agreement’s date, the clubhouse fees should be returned – “without interest”.

Given that more than five years had elapsed and the facility was still a pipe dream, the regulator concluded that the homebuyer was entitled to a refund. It ordered the developer to pay back the full ₹5 lakh within 60 days, but it denied the claim for interest, respecting the contractual language that explicitly ruled out any interest on such refunds.

Legal experts see this as a clear signal that developers can no longer hide behind vague timelines. Since 2024, MahaRERA has mandated that any promised amenity must come with a disclosed delivery schedule, and buyers are encouraged to scrutinise those dates before signing on the dotted line.

In short, if a developer promises a club‑house, a gym, or any other common facility, and it never sees the light of day within a reasonable period, you can ask for your money back – a reassurance that the regulator is finally putting its teeth into unfulfilled promises.