Withdrew Before the Builder's Extension? MahaRERA Says the Extension Cannot Undo Your Exit

On 28 May 2025, a buyer of Flat No. 1608 in Tower A2 of Godrej Forest Grove, Pune, asked to withdraw and get his money back. He had booked in February 2020, signed a registered agreement for sale on 19 November 2020 and paid Rs 25,01,353. Possession had not come. Almost three months after his request, on 20 August 2025, the builder obtained a further extension of the project's MahaRERA registration, to 30 September 2027. It then argued that the extension should stretch the possession timeline too.

On 2 November 2026, MahaRERA Member Ravindra Deshpande rejected that argument. "Such subsequent extension cannot retrospectively defeat the right already exercised by the Complainant," the order said. It directed a full refund with interest from the date of each payment, without the 2% cancellation deduction the builder wanted, and said the cancellation deed must not describe the exit as a voluntary cancellation. Bengaluru buyers facing delays and registration extensions on K-RERA can use the same reasoning, since it rests on Section 18 of the central RERA Act.

The short answer. In Complaint No. CC12504235, MahaRERA held that a buyer's withdrawal under Section 18(1)(a) is a statutory right "distinct from a request for voluntary cancellation", that project registration extensions do not automatically change the contractual possession date, and that an extension granted after the buyer withdrew cannot undo the withdrawal. Interest runs at SBI's highest MCLR plus 2% until actual refund, not to the date of failed settlement talks. The trade-off: the buyer got his money and interest back, but his claims for separate compensation for mental agony and consequential losses were rejected.

What happened in the Godrej Forest Grove complaint?

According to the MahaRERA final order in Complaint No. CC12504235, the project is registered as P52100023129. The buyer relied on Clause 15.1 of the agreement for a possession date of 30 September 2024; the builder cited 30 March 2024, subject to force majeure. The Authority said that whichever date applied, possession was not offered even by 30 March 2025, the extended completion date the buyer relied on, and the withdrawal came after that, on 28 May 2025. The order notes this discrepancy in the builder's own date and says it makes no difference to the outcome. The hearing was held in hybrid mode, and the buyer, who appeared in person, filed written submissions after taking part in conciliation and settlement meetings.

The builder blamed COVID-19, lockdowns, labour and material shortages, cost increases, a Pimpri-Chinchwad Municipal Corporation construction restriction for poor air quality dated 13 November 2023, and disputes with its principal contractor. MahaRERA said these, including "the commercial and contractual disputes with its contractor", relate to the builder's "internal arrangements for execution of the project" and "cannot automatically extinguish the statutory right of an allottee".

Does a registration extension change your possession date?

Not automatically, according to this order. MahaRERA said extensions of the project registration timeline "cannot, by themselves, be construed as an automatic alteration of the contractual possession date agreed between the promoter and the allottee or as a waiver of the allottee's statutory rights". An extension exists "to regulate and permit the promoter to complete the registered project within the extended period", and does not "take away the right of an allottee to seek relief under Section 18(1)(a)".

Our explainer on RERA registration validity and extensions under Sections 5 and 6 sets out how extensions work. This order adds the buyer-side consequence: the registration date and your agreement date are separate, and the later extension in this case came after the buyer had already exercised his right.

Why does the difference between withdrawal and cancellation matter?

The builder proposed to treat the exit as a voluntary booking cancellation, deduct 2% under MahaRERA Order No. 60/2024, and deduct brokerage and cancellation charges. MahaRERA refused. It said the request "is required to be considered in the context of the statutory right exercised by the Complainant and not as an ordinary voluntary cancellation at his own instance". The builder was held "not entitled to deduct 2% towards cancellation charges or any brokerage or similar charges".

The same logic shaped the cancellation deed. Both sides must execute and register it, sharing its cost equally, and it must record that the agreement is terminated because of the buyer's withdrawal under Section 18(1)(a) for delayed possession. It "shall not contain any recital suggesting that the transaction is being terminated solely on account of a voluntary cancellation" at the buyer's instance. MahaRERA also relied on the Supreme Court's Newtech Promoters judgment, which the builder had cited, to describe the Section 18(1)(a) refund right as "an unconditional statutory right".

Do settlement talks stop interest from running?

No. The builder said interest should stop on 30 December 2025, citing an email exchanged during settlement discussions. MahaRERA said no settlement was concluded, no cancellation deed executed and no refund paid, and "mere exchange of correspondence or discussion of a tentative settlement amount" cannot curtail the statutory entitlement. The buyer's own later settlement figures, a principal of Rs 24,76,587.13 and interest up to 30 June 2026, were also not treated as a waiver of interest until actual refund.

The operative order directs refund of the amount received for the flat, excluding stamp duty, registration charges, GST and other government taxes, with interest under Rule 18 of the Maharashtra RERA Rules at SBI's highest MCLR plus 2%, from the respective dates of each payment until actual refund. The builder must give documents and cooperation for the buyer to pursue refunds of GST, stamp duty and registration charges with the relevant authorities.

On GST, the order's reasoning is worth reading closely. The builder disputed paying interest on the GST component. MahaRERA said the builder "cannot retain any amount collected from the Complainant in connection with the transaction merely by describing it as a tax component, without furnishing a proper account". It directed an itemised statement of amounts received and refunded, showing the treatment of GST and any amount remitted to the tax authority, with any separate tax refund to be pursued before the competent authority. The order also allowed the buyer's prayer for cooperation in settling his bank loan and getting closure and NOC documents, which matters for anyone who financed the booking.

What should a Bengaluru buyer do before withdrawing from a delayed project?

If you are weighing whether to stay or exit, our guide to withdrawing for a refund or staying for interest under Section 18 covers the choice. If you decide to exit, this order suggests the following steps.

1. Find the possession date in your registered agreement for sale and check whether it has passed.
2. Check the project's RERA page for any registration extension and note its date.
3. Write to the builder stating that you are withdrawing under Section 18(1)(a) because possession was not given, and keep proof of the date.
4. Do not sign forms that describe your exit as a voluntary cancellation if your reason is delay.
5. Object in writing to any cancellation charge, brokerage or percentage deduction from your refund.
6. Mark settlement emails as without prejudice to your claim for interest until actual refund.
7. Read the cancellation deed's recitals before signing, and ask that it record withdrawal for delayed possession.

Will K-RERA follow this MahaRERA order?

This is a Maharashtra order on a Pune project. Its reasoning, however, rests on Section 18(1)(a) and Section 19(4) of the RERA Act and the Supreme Court's Newtech judgment, which apply in every state. The details that are state-specific are the interest rule and MahaRERA's Order No. 60/2024 on cancellation deductions. The interest rate in this order comes from Maharashtra's own RERA rules, so check the rate prescribed for Karnataka projects before you estimate a refund.

The rejected claims are a useful reality check. The buyer's request for separate compensation for mental agony was refused because Section 18 interest is compensatory, citing the Bombay High Court's Neelkamal Realtors judgment, and claims for consequential losses and a restraint on the builder were rejected for lack of a specific basis. Our explainer on RERA exit routes and refunds covers the other options.

Frequently asked questions

Can a later RERA registration extension cancel my withdrawal request?

Not according to MahaRERA's 2 November 2026 order. The builder obtained an extension on 20 August 2025, after the buyer withdrew on 28 May 2025. MahaRERA held that such a subsequent extension cannot retrospectively defeat the right already exercised by the buyer under Section 18(1)(a).

Does a project registration extension change my possession date?

MahaRERA said extensions of the registration timeline cannot by themselves be treated as an automatic change to the contractual possession date or as a waiver of the buyer's rights. An extension lets the promoter complete the project within the extended period; it does not remove the Section 18(1)(a) right.

Can the builder deduct cancellation charges if I withdraw for delay?

In this case, no. MahaRERA held that a withdrawal under Section 18(1)(a) is not an ordinary voluntary cancellation, rejected the 2% deduction proposed under MahaRERA Order No. 60/2024, and barred deductions for cancellation charges, brokerage or similar charges from the refund.

Does interest stop when settlement talks begin?

No. MahaRERA said that without a concluded settlement, cancellation deed or refund, mere correspondence about a tentative amount cannot curtail the statutory entitlement. Interest at SBI's highest MCLR plus 2% runs from the date of each payment until the actual refund.

Last updated 2026-11-15. PropNewz Team.