Haryana RERA Dismisses Homebuyers' Complaint Against M3M, Orders Full Refund Of Booking Amount

The Haryana Real Estate Regulatory Authority (RERA) has dismissed a complaint filed by two homebuyers against M3M India, holding that they had no right to seek an allotment letter or execution of the builder-buyer agreement (BBA) since the booking never matured into a confirmed allotment.

A coram of Member Ashok Sangwan said the homebuyers had not complied with the required payment schedule, and therefore the transaction never progressed to a confirmed allotment, rendering their prayer for allotment and BBA execution unsustainable. The Authority also observed that the cancellation had not caused any actual loss to the builder and therefore directed it to refund the full booking amount of Rs 16 lakhs to homebuyers within 90 days.

The complainants had booked two units in M3M Crown Phase-I, Gurugram, each priced at Rs 3.34 crore, and paid Rs 16 lakh per unit. Before this, they had booked a unit in M3M Capital and paid Rs 11 lakh. When M3M Capital Phase-3 faced delays in RERA registration, the developer offered a transfer to M3M Crown Phase-I, which the homebuyers accepted. A unit was allotted and an additional Rs 5 lakh was paid in December 2023, after which the builder issued a revised cost sheet showing a net cost of Rs 2.98 crore.

On January 4, 2024, the homebuyers issued a cheque of Rs 17.07 lakh towards 10% of the sale consideration, stating that the builder had assured them it would be encashed only after issuing the allotment letter and executing the BBA.

However, in March 2024, the builder presented the cheque without completing these formalities. The homebuyers stopped payment and repeatedly sought compliance, including through a legal notice dated October 29, 2024, but received no response.

Instead of issuing the allotment letter, the builder sent refund cheques totaling Rs 24.42 lakh out of the Rs 32 lakh paid. The homebuyers rejected the refund and approached the Authority seeking directions to compel issuance of the allotment letter and execution of the BBA.

The authority held that the homebuyers had not fulfilled the financial obligations necessary for confirmation of the booking and that, without a formal allotment, they had no enforceable right to seek these documents. Noting that the builder had not suffered any loss due to the cancellation, it directed M3M to refund Rs 16 lakh to each homebuyer within 90 days without any deductions.

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