Bombay HC upholds JP Builders' termination of Sandhu's flat allotment
The Bombay High Court has upheld developer JP Builders' decision to terminate homebuyer Santosh Amarsingh Sandhu's flat allotment over unpaid stamp duty and registration charges. Justice Sandeep V Marne set aside MahaRERA and MREAT orders, directing the developer to refund Sandhu's Rs 12.30 lakh wit
MUMBAI: The Bombay High Court has upheld a developer's decision to terminate a homebuyer's flat allotment after he failed to complete stamp-duty and registration formalities despite repeated notices. Justice Sandeep V Marne held that a promoter cannot be expected to wait indefinitely for a buyer to fulfil his obligations.
The court set aside orders passed by MahaRERA and the Maharashtra Real Estate Appellate Tribunal (MREAT), which had directed JP Builders and Developers to execute an agreement for sale with Santosh Amarsingh Sandhu for another flat of his choice. However, the court directed the developer to refund Rs 12.30 lakh paid by Sandhu, with interest at SBI MCLR plus 2 per cent from July 12, 2016, until payment.
The dispute arose after the flat originally allotted to Sandhu was not constructed. In May 2019, the developer asked him to select another flat and complete the stamp-duty and registration formalities. Sandhu selected Flat 1208, and the developer agreed to the allotment subject to a Rs 1.75 lakh floor-rise charge. Between May and July 2019, the developer repeatedly asked him to pay the stamp duty and registration charges. Sandhu cited financial difficulties and asked the developer to pay the stamp duty, saying he would repay the amount.
Sandhu later claimed to have arranged Rs 4.65 lakh and transferred it to a Punjab National Bank account for the statutory payment. The High Court noted that the amount was never credited to the Registration Authority and no payment receipt was generated. The court also rejected Sandhu's claim that an earlier payment of Rs 12.30 lakh by the previous allottees should be treated as his payment.
While upholding the termination, the court said the developer could not retain Sandhu's Rs 12.30 lakh and ordered its refund with interest. Advocate Vishal Kanade with Rajesh Vanzara appeared for the builder.
