Haryana real estate tribunal sets aside RERA’s order cancelling three Gurugram units

The RERA bench ruled that the promoter must allow allottees 90 days to clear dues, followed by at least 30 days’ advance notice before cancellation

Observing that the promoter had cancelled the allotments without following the mandatory notice and grace-period requirements under the builder-buyer agreement, the Haryana Real Estate Appellate Tribunal (HREAT) in Panchkula has set aside the cancellation of three units in Gurugram’s M3M 65th Avenue project.

The project had received its occupation certificate on September 30, 2021, while the agreed possession date was June 2022. (HT Photo for representation)

A bench comprising justice Rajan Gupta, chairman, and Dinesh Singh Chauhan, member (technical), held that the promoter was required to give the allottees a 90-day period to clear their dues, followed by at least 30 days’ advance notice before cancellation. “Thus, the cancellation letter dated December 10, 2021, is illegal and invalid,” the tribunal observed.

The case

The tribunal was hearing three connected appeals filed by Neeraj and Vandana Bhagat; Amarjit Singh; and Varun and Tanu Ahuja. The units in the Sector-65 project had been cancelled on December 10, 2021, after the buyers failed to clear outstanding dues.

Setting aside the July 23, 2024, order of the Haryana Real Estate Regulatory Authority (HRERA), Gurugram, the tribunal directed Manglam Multiplex Pvt Ltd to hand over the units to the allottees within 90 days, subject to payment of outstanding dues and settlement of accounts.

The project had received its occupation certificate on September 30, 2021, while the agreed possession date was June 2022. In the lead appeal, the total sale consideration was ₹3 crore, of which the allottees had paid ₹1 crore.