MahaRERA Gives Westwood Allottees Final 30-Day Window To Clear Dues Before Forfeiture of Units

Update: 2025-12-04 13:19 GMT
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The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ruled that homebuyers who default on payments in the Westwood project in Borivali cannot prevent the promoter from terminating their agreements for sale. Holding that an allottee who signs such an agreement is bound “to make necessary payments in the manner and within the time as specified”, Member Mahesh Pathak granted...

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The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ruled that homebuyers who default on payments in the Westwood project in Borivali cannot prevent the promoter from terminating their agreements for sale.

Holding that an allottee who signs such an agreement is bound “to make necessary payments in the manner and within the time as specified”, Member Mahesh Pathak granted them “one last opportunity” to clear their dues with interest within 30 days or face automatic forfeiture of their allotments.

The order delivered on December 2, 2025, disposed of four complaints filed by Dimple Realtors Private Limited. The promoter had approached the Authority on January 24, 2025, seeking execution of registered cancellation deeds against several allottees of the Westwood project, including Jaymanav Singh and Kalpana Balasaheb Sonawane, who objected to the cancellation. It said these allottees had repeatedly failed to pay the balance consideration despite obligations under their sale agreements.

The builder argued that the prolonged non-payment at a stage when construction had reached 54 percent had caused “financial burden and blocking inventory”.

Only a few allottees contested the complaints. They said the promoter's demands were unwarranted and pointed to incomplete slab work. They also said they were willing to pay the remaining amount after their loans were sanctioned. To support their claim that a sale remains valid even if a part of the consideration is unpaid, they cited Vidyadhar v. Manikrao.

The authority rejected these arguments. It held that timely payment is a clear statutory obligation under Sections 19(6) and 19(7) of the RERA Act. It said the allegations of incomplete construction and reliance on loan sanction were a “flimsy ground”.

It also said that loan approval depends on the borrower's financial eligibility and that a promoter cannot be compelled to secure loan sanction for an allottee. The contesting allottees had not produced any documents to support their claims.

For the remaining allottees, the authority recorded that they had not opposed the promoter's case at all and that their conduct showed unwillingness to contest the proceedings.

Invoking the principles of natural justice, the authority granted all allottees a final period of 30 days to pay the outstanding consideration with applicable interest. It warned that failure to comply would allow the promoter to terminate the agreements under Section 11(5) of the RERA Act by invoking the forfeiture clause for liquidated damages.

All four complaints were disposed of with these directions.

Case Title: Dimple Realtors Pvt. Ltd. v. Jaymanav Singh & Ors.

Complaint Numbers: CC12500250, CC12500251, CC12500252, CC12500253

For Promoter/Builder: CA Ashwin Shah

For Respondents: Respondents–in-person (Nos. 1 and 2), Adv. Vinod Pandey along with PR Chaurasia for Respondent No. 3

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