The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ruled that a developer cannot shift stamp duty and registration charges to a plot buyer when its project disclosures and allotment letter had clearly stated that these costs would be borne by the developer.
The case concerned a plot in Raigad booked in March 2025. The buyer had paid ₹1.66 crore, including the plot consideration, maintenance security deposit and corpus fund. The allotment letter dated March 11, 2025 promised possession by December 31, 2025.
The parties had executed a notarised but unregistered agreement for sale. A dispute later arose when the developer’s draft Sale Deed sought to make the buyer responsible for stamp duty and registration charges, despite the earlier commitment that these would be paid by the developer.
The developer argued that the provision in the allotment letter was a typographical error and that the buyer was responsible for the delay in completing the transaction.
MahaRERA Rejects Developer’s Stand
MahaRERA rejected the developer’s argument and held that the promoter could not simply resile from a representation made in its project disclosures and allotment letter.
The Authority also rejected the argument that the buyer was not an allottee because the agreement had not been registered. Since the developer had issued an allotment letter and admitted receiving ₹1,66,06,954, the buyer was entitled to protection under RERA.
MahaRERA further held that the developer had violated Section 13(1) of RERA by accepting almost the entire consideration without first executing and registering the agreement for sale.
Interest for Delayed Possession
As possession was not handed over by the committed date, MahaRERA directed the developer to pay interest for the delayed possession period of nearly four months.
For calculating the interest, the Authority considered the amount paid towards the plot consideration, excluding amounts such as stamp duty, registration charges and government taxes.
Key Takeaway
The ruling makes it clear that developers must honour commitments contained in their project disclosures and allotment letters. A promoter cannot later shift a financial liability to the purchaser merely by claiming that an earlier commitment was a typographical error.
The order also highlights the importance of timely possession, proper registration of agreements and compliance with Section 13(1) of RERA.
