The Maharashtra Real Estate Regulatory Authority (MahaRERA) has upheld the right of a promoter to cancel flat allotments where homebuyers repeatedly defaulted on payment obligations, reinforcing that non-payment under a registered Agreement for Sale will not be protected under the Real Estate (Regulation and Development) Act, 2016.
In a common order dated 18 December 2025, MahaRERA Chairperson Manoj Saunik ruled in favour of Sunteck Realty Ltd and its group companies in five connected complaints filed against homebuyers in the project “Sunteck West World–1, Tivri, Naigaon East” (MahaRERA Registration No. P99000017606).
The promoter approached MahaRERA seeking confirmation that the Agreements for Sale executed with the concerned allottees stood validly terminated under Section 11(5) of the RERA Act, citing persistent payment defaults despite repeated reminders and termination notices.
MahaRERA noted that the project had received its Occupation Certificate on 20 May 2022 and that the allottees were duly informed to pay the balance consideration. However, the buyers failed to clear their dues and did not place any material on record to demonstrate compliance with the payment schedules agreed under the registered Agreements for Sale.
The Authority examined Section 19(6) of the RERA Act, which casts a statutory duty on allottees to make payments in the manner and within the time specified in the agreement. It held that the buyers had violated this provision by failing to make stage-wise payments even after multiple opportunities were granted.
Rejecting the buyers’ claims that payments were withheld due to alleged non-cooperation by the promoter, MahaRERA observed that no documentary proof—such as encashed cheques, receipts, or acknowledgements—had been produced to substantiate their defence.
Accordingly, MahaRERA ruled that the promoter had lawfully exercised its right to terminate the allotments under Section 11(5) of the Act. The Authority directed the defaulting allottees to execute cancellation deeds and allowed the promoter to proceed with cancellation of the Agreements for Sale.
However, the Authority also clarified that the promoter is bound to refund the amounts received from the allottees strictly in accordance with the refund and deduction clauses of the respective Agreements for Sale, and cannot forfeit amounts arbitrarily.
The order reinforces MahaRERA’s consistent stand that while homebuyers’ rights are protected under RERA, continued non-payment of contractual dues will not be condoned, particularly after a project has received its Occupation Certificate.
