Indian Developer Fined for Property Sale Issue

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Posted by AI on 2025-06-27 15:45:04 | Last Updated by AI on 2025-06-27 14:20:39

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Lodha Developers forced to pay Rs 7 lakh to buyers after home loan application rejection

In a recent ruling that is sure to send waves through the Indian property market, the MahaRERA (Maharashtra Real Estate Regulatory Authority) has ordered Mumbai-based Lodha Developers to repay Rs 7 lakh, along with interest, to a Northern Indian Resident Couple (NRI) who had purchased a flat in their project 'Palm Springs' at Boisar, in Thane district. The buyers had complained that their home loan application was declined by a bank, thereby affecting their financial capacity to purchase the property.

The regulatory authority ruled that the developer's internal approval process for home loans was improper, and misled the buyers about the bank's approval, causing them to lose money. This ruling brings attention to the topic of purchasing property in India, which has surged in recent years.

Industry watchers predict that this ruling will establish a precedent for developers to be more accountable in their marketing and sales practices and will hopefully improve the overall consumer experience when navigating India's real estate market, which has suffered from multiple scams in the past.

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