In a significant ruling on double booking and refund obligations, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Sunteck Realty Ltd to refund the amount paid by a homebuyer after finding that the builder failed to issue a valid allotment and wrongfully attempted to forfeit the booking amount.
The order, passed on 18 December 2025, pertains to a complaint filed by Ashish Kumar Tiwari, who alleged that he was misled into booking a flat in the project “Sunteck West World–1, Naigaon East”, only to later discover that the flat had already been allotted to another buyer.
As per the facts recorded by MahaRERA, the complainant initially paid ₹50,500 towards a booking in another Sunteck project. On the builder’s assurance that this amount would be adjusted, he subsequently paid an additional ₹1.62 lakh towards booking Flat No. C-1405 in Sunteck West World–1. Despite repeated follow-ups, the complainant never received an allotment letter or confirmation.
During a site visit, the complainant was informed that the flat was already allotted to another person and that his name did not reflect in the builder’s records. Importantly, MahaRERA noted an internal email from the promoter acknowledging that the case involved double booking and instructing staff to process a refund.
Despite this admission, the builder later issued a cancellation letter claiming forfeiture of the amount paid, citing alleged default by the buyer.
MahaRERA rejected the promoter’s defence, observing that the booking form was not signed by the promoter, no Agreement for Sale had been executed, and no allotment had ever been confirmed. The Authority held that in the absence of a concluded contract, the complainant could not be treated as a defaulter.
The Authority further observed that the complainant had sought a refund prior to the issuance of the cancellation letter, and that the attempt to forfeit the amount was unjustified. Holding the promoter responsible for the error, MahaRERA concluded that the complainant was a bona fide purchaser and that the fault squarely lay with the builder.
Accordingly, MahaRERA directed the promoter to refund the amount paid by the complainant within 60 days, excluding only statutory payments such as taxes and government charges. The Authority refused to entertain the promoter’s claim that the amount stood forfeited.
The order sends a strong message that double booking and failure to issue proper allotment cannot be cured by unilateral cancellation or forfeiture, and that builders will be held accountable for administrative lapses under RERA.
