Absolute Nature of Allottee Refunds and Non-Discretionary Timelines Under Section 18 of the RERA Act

sketch of the Bombay High Court
Case
SANKLECHA CONSTRUCTIONS PVT LTD v. NITIN MADHUKAR SHEWALE (Bombay High Court, 28-09-2026)
Law
Real Estate (Regulation and Development) Act.

Highlights of the Judgment:

  • Comprehensive analysis of Section 18(1) of the Real Estate (Regulation and Development) Act, 2016 concerning an allottee's right to refund.
  • Examination of whether a promoter's obligation to refund received amounts with interest upon demand is absolute and unqualified.
  • Judicial interpretation distinguishing between ratio decidendi and obiter dicta regarding Supreme Court precedents in Newtech Promoters.
  • Evaluation of regulatory discretion to relax refund timelines or make refunds contingent upon securing an occupation certificate.
  • Reconciliation of divergent interpretations arising from Neelkamal Realtors concerning promoter hardships and statutory mandates.
  • Differentiation between the statutory mechanisms for claiming refund of principal versus adjudicating compensation.