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MahaRERA Strikes Down Builder's Unilateral Cancellation Clause, Orders Interest from Oct 2023 Under RERA Act

Target:MPSCUPSC GS-IISSC GATeachingPrelims HighMains MediumStatic GK Link
03 Aug 2026
~2 min
Source: Indian Express
Key Data:₹42.65 lakh₹44.90 lakhSeptember 30, 2023October 1, 2023Clause 7(G)₹20,000 litigation costs
Bodies:MahaRERANirmiti Vastu Creation LLP
Practice MCQs from today's news ▸
What This Article Covers

1.MahaRERA struck down Clause 7(G) of the agreement that allowed the builder to unilaterally cancel the flat allotment through a Power of Attorney holder, calling it illegal and unenforceable.

2.The developer, Nirmiti Vastu Creation LLP, was directed to pay interest from October 1, 2023 (the date after the possession deadline) until lawful physical possession with a valid Occupancy Certificate is handed over.

3.The ruling reaffirms that termination must follow the statutory procedure under the RERA Act and MahaRERA Order No. 38/2022, and the builder was also ordered to form a cooperative housing society under Section 11(4)(e) of the RERA Act.

The Big Picture
Prelims · HighMains · Medium

MahaRERA has declared illegal a contractual clause that allowed a builder to unilaterally cancel a flat allotment via Power of Attorney, reinforcing statutory safeguards under the RERA Act. The developer was ordered to pay interest for delayed possession from October 1, 2023. This ruling is a key example of regulatory protection for homebuyers and a must-know for exams covering RERA, consumer rights, and state-level governance.

Exam Lens

Quick Exam Facts From News

Regulatory AuthorityMaharashtra Real Estate Regulatory Authority (MahaRERA)
Clause Struck DownClause 7(G) – unilateral cancellation via Power of Attorney
Buyer's Payment₹42.65 lakh paid (total consideration ₹44.90 lakh)
Possession DeadlineSeptember 30, 2023
Interest Start DateOctober 1, 2023
Litigation Costs₹20,000

1-Minute Revision

  • ›Regulatory Authority: Maharashtra Real Estate Regulatory Authority (MahaRERA)
  • ›Clause Struck Down: Clause 7(G) – unilateral cancellation via Power of Attorney
  • ›Target this Data: Interest start date – October 1, 2023
  • ›Target this Nodal Body: MahaRERA (Maharashtra Real Estate Regulatory Authority)
  • ›Target this Legal Point: Clause 7(G) – unilateral cancellation via POA; Section 11(4)(e) of RERA Act for cooperative housing society

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which authority passed the order striking down the builder's unilateral cancellation clause?

Q2Statement-basedHard

Consider the following statements regarding the MahaRERA ruling:

1. MahaRERA declared Clause 7(G) of the agreement illegal and unenforceable.

2. The builder was ordered to pay interest from the date of booking (August 2021).

3. The buyer had paid ₹42.65 lakh against the total consideration of ₹44.90 lakh.

Which of the statements given above is/are correct?

Q3Data-centricMedium

What was the total consideration (agreed price) for the flat booked by Hemant Ashok Gade?

Q4Application/ImpactMedium

What is the primary objective of the RERA Act as highlighted by this ruling?

All 15 MCQs ▸
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