Archive · 3 Aug 2026
MahaRERA Declares Builder Clause Illegal, Orders Interest
A state agency in Maharashtra said a builder could not cancel a flat just by using a Power of Attorney.
The agency found this rule against the law that protects buyers.
A buyer named Hemant Ashok Gade complained, and the agency ruled in his favor.
The builder, Nirmiti Vastu Creation LLP, said it will appeal the decision within two months.
The court also said the builder must pay interest for any delay in handing over the flat.
MahaRERA declared a builder’s unilateral cancellation clause illegal.
Clause allowed cancellation of flat allotments via Power of Attorney.
Ruling cites violation of safeguards under the RERA Act.
Complaint filed by Hemant Ashok Gade against Nirmiti Vastu Creation LLP.
Developer said it will appeal within two months.
- Who
- MahaRERA, Nirmiti Vastu Creation LLP, Hemant Ashok Gade
- What
- Declared builder's unilateral cancellation clause illegal and ordered interest for delayed possession
- When
- Last month (recent ruling)
- Where
- Kharadi, Pune, Maharashtra
- Why
- Clause violates safeguards under the Real Estate (Regulation and Development) Act (RERA)
- Ruling Authority
- Maharashtra Real Estate Regulatory Authority (MahaRERA)
- Developer
- Nirmiti Vastu Creation LLP
- Project
- Nirmiti 25 East
- Location
- Kharadi, Pune, Maharashtra
- Clause Type
- Unilateral cancellation via Power of Attorney
- Appeal Deadline
- Two months