Allotment letter can be treated as an agreement: Maharashtra Appellate Tribunal

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By Maharashtra Bureau


Home buyers with allotment letter are also eligible to seek a refund of the booked flat with interest under section 18 of RERA Act, from the builder.

Maharashtra Real Estate Appellate Tribunal was recently hearing a case in which it said, “Allotment letter it is quite evident that promoter agreed to sale and allottees agreed to purchase the flat for an agreed price in the allotment….though the allotment letter executed on November 2012, it is as good as agreement between promoter and allottees to sale the flat.”

After all, the intention of the parties is important to gather the nature of the transaction and not the nomenclature of the documents.

The definition if an agreement as given under Section 2 (c) of RERA Act, 2016 says that it is an agreement entered into between promoter and allottee.

Considering the contents of allotment letter regarding details of sale and purchase of the flat between allottees and promoter along with the condition of the stipulated period of handing over possession and the manner of payment of price as per the schedule it can be easily said that promoter agreed to sale the flat, court read.

The allottees had purchased a flat in Winter Green of Rivali Park, Borivali East for Rs 1,48,73,782 and for the said price promoter issued allotment letter in November 2012. The promoter agreed to hand over the possession in February 2016. But the promoter failed to deliver the possession of the said flat and the project got delayed by almost four years. Allottee removed to Maha RERA and later on to Appellate Tribunal for withdrawing from the project and seeking a refund with 18 per cent interest.

Order said, “In the view of clause 18 and 19 of allotment letter, I am of the opinion that the allotment letter is binding on promoter and allottees and the transaction which is revealed from the allotment letter is of sale of flat by promoter to the allottees as per the terms and conditions mentioned in the said allotment letter.”

The advocate of builder raised several objection appeals before the Tribunal. “There is no hardship to the promoter by paying the refund along with the interest to the allottees on account of withdrawal of allottee from the said project because the allotment letter and booking of allottees shall stand cancelled and allottees will be entitled to get back their amount along with interest from the promoter”, it added.

It further added the promoter will get the right to sale the said flat to any other purchaser. So promoter is not put to any loss as he gets back right to sale flat as per his choice.

The court ordered the promoter to refund the amount along with to the home buyer from the date of payment of amount till its realisation and also pay Rs, 5000 towards costs of the complainant.

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