Promoter's Statutory Obligation to Refund Allottee Amounts Under Section 18 RERA Is Absolute

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, Constitution of India.

Highlights of the Judgment:

  • Examination of whether a promoter's obligation to refund amounts under Section 18(1) of the RERA Act is absolute and unqualified.
  • Differentiation between obiter dicta and ratio decidendi concerning Supreme Court observations in Newtech Promoters.
  • Analysis of the regulatory authority's lack of discretion to delay refunds until obtaining an occupation certificate.
  • Reconciliation of conflicting interpretations regarding mitigating circumstances for project delays under RERA.
  • Distinction between statutory refund obligations and separate adjudicatory mechanisms for compensation claims.