MahaRERA fined two developers ₹10 lakh for never allotting a flat booked 16 years ago

Two homebuyers booked Flat No. B07, 795 square feet, in Wing B of a project originally called Sun Gates and later renamed Sethia Imperial Avenue, from Super Construction under an allotment letter dated May 29, 2010, for Rs 43,72,500. They paid Rs 17,49,000, with possession promised by June 23, 2012. The registered agreement for sale was never executed, and in a March 23, 2018 letter the developer said it could not continue construction and told the buyers to approach Sai Enterprises, which had acquired the development rights, for a refund. The buyers refused and insisted on the flat.

On October 31, 2025, MahaRERA directed both developers to allot a 795-square-foot flat and execute the registered agreement within 45 days, and to pay simple interest on the Rs 17.49 lakh from June 24, 2012 until possession, jointly and severally, under Rule 18 of the Maharashtra RERA Rules. The developers did not comply. The homebuyers returned seeking enforcement and a penalty under Section 63 of the Act, alleging flats were being sold even after the order to defeat their claim.

The developers' defenses failed. Sai Enterprises argued it had no contract with the buyers and no flat of the specified size in its registered project; Super Construction produced an architect's certificate, dated January 19, 2026, saying 795 square feet was the saleable area and the carpet area was about 480 square feet. Adjudicating Officer R.K. Malabade found the flat had not been allotted within 45 days, and that all flats in the project had been sold with none left for the complainants — so no 'fit and proper person' could be appointed under Circular No. 50 to execute the agreement.

He also held the interest on the buyers' Rs 17.49 lakh had not been paid. MahaRERA imposed a Rs 10 lakh lump-sum penalty on both developers under Section 63, payable within two months, and ordered recovery warrants for the accrued interest plus Rs 20,000 in complaint costs.

A Rs 10 lakh penalty under Section 63, recovery warrants for interest on Rs 17.49 lakh from June 24, 2012, and Rs 20,000 in complaint costs.

The developer took Rs 17.49 lakh in 2010, missed the 2012 possession date, never executed the agreement for sale, and in 2018 tried to convert the buyers into refund claimants.

Compliance became impossible while the selling continued: by enforcement time every flat was sold and none remained for the buyers, who alleged fresh sales after the 2025 order.

The developers treated the October 2025 allotment order as optional — no allotment, no interest payment — which converted a performance order into a penalty case under Section 63.

An order to perform means nothing if the seller has already emptied the shelf — regulators now check whether compliance is still physically possible before accepting excuses.

MahaRERA ordered both developers to pay the Rs 10 lakh penalty within two months and deposit it with the authority, failing which a recovery warrant would issue under Section 40(1) of the Act. Recovery warrants were also directed for the interest accrued on the buyers' Rs 17.49 lakh from June 24, 2012, and for the Rs 20,000 in complaint costs. The adjudicating officer recorded that with every flat sold, no fit and proper person could be appointed to execute the agreement for sale in the buyers' place.