The Maharashtra Real Estate Regulatory Authority (MahaRERA) ruled that a real estate developer cannot shift the burden of stamp duty and registration charges to a homebuyer after initially promising to bear those costs at the time of booking. Stating this, the authority directed the developer of a plotted development project near Mumbai to pay interest to a plot buyer for alleged delayed possession, even though the agreement for sale remained unregistered.
The case
The case relates to a buyer who booked a plot in a plotted development project and paid nearly the entire consideration amount of over ₹1.50 crore to the developer. The buyer had paid the amount, which included the sale consideration, maintenance security deposit and corpus fund. An allotment letter and a notarised agreement for sale were executed on March 11, 2025, but the agreement was not registered.
The buyer maintained that the allotment letter stated the developer would pay the stamp duty and registration charges, and this was issued by the developer during the project booking. The buyer alleged that the developer was now asking him to bear the cost of stamp duty and registration charges.
Developer's argument
The developer argued that the buyer could not claim allottee (buyer) status because the agreement for sale had not been registered.
The developer told MahaRERA that the complainant is not entitled to any interim or ad-interim relief and that the complaint was filed to create a dispute, delay the registration process and claim interest and penalties. The respondent has contended that the complainant has not cooperated in execution of the final Sale Deed and that, since the Deed has remained unregistered, possession cannot legally be handed over.
{{/usCountry}}The developer told MahaRERA that the complainant is not entitled to any interim or ad-interim relief and that the complaint was filed to create a dispute, delay the registration process and claim interest and penalties. The respondent has contended that the complainant has not cooperated in execution of the final Sale Deed and that, since the Deed has remained unregistered, possession cannot legally be handed over.
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"The provision in the Allotment Letter stating that the promoter would bear the stamp duty and registration charges was merely a typographical error, whereas the subsequently executed Agreement for Sale has placed such liability upon the purchaser. Hence, it has denied any liability to refund such amounts and has disputed the complainant’s calculation of payments towards stamp duty and registration charges," the developer told MahaRERA.
MahaRERA's verdict
MahaRERA rejected the developer's argument, noting that the buyer had been issued an allotment letter and the developer had admitted receiving substantial payments. The authority held that the lack of registration of the agreement did not take away the buyer's status as an allottee.
Importantly, MahaRERA noted that under Section 13 of the RERA Act, a developer cannot accept more than 10% of the property cost without first entering into a written and registered agreement for sale. In this case, the developer had received almost the entire consideration despite the agreement remaining unregistered. MahaRERA directed both parties to register the agreement.
Regarding the dispute over who should pay stamp duty and registration charges, the MahaRERA order stated, "As far as the issue of stamp duty and registration charges, raised by the complainant, MahaRERA has noticed that, in the deviation report dated 07-01-2025 uploaded by the developer on the MahaRERA website in respect of its model agreement for sale, has specifically provides that the developer shall bear the stamp duty and registration charges payable on the agreement and the documents executed pursuant thereto."
"The developer cannot now contend that the similar provision mentioned in the said allotment letter was merely a typographical error and thereafter seek to execute an agreement for sale by shifting the said liability upon the buyer. The developer is bound by its own project disclosures made before," the MahaRERA said in its order.
Meanwhile, the MahaRERA also directed both the developer and buyer to execute the agreement for sale based on the terms agreed in the allotment letter, and directed the developer to pay interest for delayed possession of nearly four months.