In a major ruling reinforcing homebuyer protection, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has held that even unregistered allotment letters issued before RERA came into force are valid evidence of property allotment — provided that money was paid and flats were promised by the developer.

The order, passed by MahaRERA Chairperson Manoj Saunik on October 30, 2025, came in response to five complaints filed by homebuyers against AAP Realtors Ltd. and Samta Builders Pvt. Ltd., the promoters of the Tirumala Habitats project (MahaRERA Reg. No. P51800004278) in Mumbai.

What the Case Was About

Between 2010 and 2016, several buyers booked apartments in the Tirumala Habitats project, paying sums ranging from ₹10 lakh to ₹50 lakh. The developers had promised possession between 2014 and 2019, but no agreement for sale was executed and possession was never granted.

Buyers alleged that the promoters later sold their booked flats to third parties without refunds, leading to complaints before MahaRERA.
The developers, in defense, claimed that these were loan transactions and not genuine bookings — arguing that the allotment letters were issued merely as “security for advances”.

MahaRERA’s Observations

• The Authority found no proof of any loan agreements and accepted the buyers’ documents as valid evidence of flat allotment.
• Since no possession dates were mentioned in the letters, MahaRERA treated June 30, 2019 (declared RERA completion date) as the official possession date.
• The developers had also failed to disclose details of sold and unsold units, violating Sections 11(1)(b), (e), and (f) of the Real Estate (Regulation and Development) Act, 2016.

The Order

1. Complaint Allowed: All five complaints were upheld.
2. Refund for One Buyer: The first complainant, who cancelled his booking, will get a refund with interest.
3. Alternate Flats for Four Buyers: The remaining buyers will get possession of alternate flats of equivalent size within the same project after paying balance dues.
   • If no unsold flats remain, they too will receive refunds with interest.
4. Interest Rate: To be calculated under Rule 18 of Maharashtra RERA Rules (SBI MCLR + 2%).
5. Penalty: MahaRERA imposed a ₹1 lakh penalty on the promoter for failing to disclose mandatory project details.
6. Compensation: Buyers can approach the Adjudicating Officer for computation of damages.

Why This Order Matters

This ruling sends a strong message to developers who attempt to label pre-RERA bookings as loans to escape accountability. MahaRERA has made it clear that any document showing payment and a flat promise establishes an “allottee” relationship under the law — even if it predates RERA registration.

For homebuyers, it reaffirms that RERA protection extends to genuine pre-RERA transactions, especially when developers have accepted substantial amounts without fulfilling commitments.

Key Takeaway

MahaRERA once again emphasized that transparency and accountability are non-negotiable — and that even unregistered documents hold weight if they reflect a bona fide promise to homebuyers.

Also Read: MahaRERA Appoints Revenue Recovery Officers to Enforce Builder Penalties, Boosting Homebuyer Protection

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