Failure by a homebuyer to pay the next immediate installment after raised by the builder within 15 days can lead to cancellation of the allotment.

By Varun Singh

When one buys a home, the homebuyer buys his dream, it is not just a house that will accommodate him and his family but will decide how their future will be.

Similarly when a developer builds a home he’s doing it to carry out a business, which will help him and his family survive. Also he has to pay his staff, who survive on the money coming from the homebuyer.

There are many a times that a homebuyer knowingly, or unknowingly fails to pay the next instalment.

In this case, what is expected of a homebuyer to do, the homebuyer should pay the instalment within 15 days of the builder raising the claim.

If the homebuyer fails to make the payment within 15 days of such claim being raised by the builder, the builder is entitled to cancel the allotment.

On August 12, MahaRERA came up with a circular that has defined how the allotment letter or agreement for sale will look like.

In this under the clause 12 of the proforma uploaded by MahaRERA, it has mentioned the following.

“In the event the booking amount is collected in stages and if the allottee fails to pay the subsequent stage installment, the promoter shall serve upon the allottee a notice calling upon the
allotted to pay the subsequent stage installment within 15 (fifteen) days which if not complied, the promoter shall be entitled to cancel this allotment letter.”

The clause further reads, “On cancellation of the allotment letter the promoter shall be entitled to forfeit the amount paid by the allottee or such amount as mentioned in the Table enumerated in Clause 9 whichever is less.”

Details of table 9 is as follows:

Failure by a homebuyer to pay the next immediate installment after raised by the builder within 15 days can lead to cancellation of the allotment.
Failure by a homebuyer to pay the next immediate installment after raised by the builder within 15 days can lead to cancellation of the allotment.

Now the developer has legitimate reason to cancel the booking on account of failure from the homebuyer to make payment to him.

You May Also Like

Mall Vacancy Levels Down to 8.3% in H1 2024 amid Robust Leasing, Limited Supply

According to ANAROCK’s H1 2024 Retail RELEAP report, mall vacancy rates have dropped to 8.3%, the lowest in six years, as demand continues to outstrip supply. Over 3 million square feet of retail space was leased in the first half of 2024, with a significant demand for smaller spaces and a growing presence of exclusive watches and jewellery stores. The highest upcoming retail supply is expected in NCR, MMR, and Hyderabad, accounting for over 85% of new space.

🏠 Grand Housing Files DRHP for ₹5 Face Value IPO; Entire Offer is OFS by Promoter

Grand Housing, a Chennai-based plotted development real estate firm, has filed its DRHP with SEBI for an IPO via an offer for sale of 3.55 crore shares by promoter Vijay Surana. The company focuses on residential and industrial land development and reported a sharp rise in revenue and profit in FY25.

TATA Capital invests Rs. 130 crores in Prescon Group’s Mahim project

By Varun Singh Tata Capital Housing Finance Ltd, the flagship financial services…

GST Cut on Cement: Will Homebuyers Really Benefit, or Will Developers Pocket the Gains?

The GST Council’s decision to cut cement tax rates to 18% is expected to reduce construction costs by 3–5%. But will this relief ever reach homebuyers? Drawing from two decades of reporting on real estate, Varun Singh argues that past experience shows developers rarely pass on such benefits. From premium reductions to infrastructure boosts like the Coastal Road, home prices have only risen. Unless homebuyers collectively demand accountability, this GST relief too may remain only in builders’ profit books.