Haryana RERA Rejects Homebuyers’ Complaint Against M3M, Directs Full Refund of Booking Amount
Sangeetha Prathap
The Haryana Real Estate Regulatory Authority (RERA), Gurugram, has dismissed a complaint filed by two homebuyers against M3M India, holding that the complainants had no enforceable right to seek an allotment letter or execution of the builder-buyer agreement (BBA) since the booking did not mature into a confirmed allotment. The Authority concluded that the homebuyers failed to comply with the mandated payment schedule that formed the basis of allotment, and therefore the request for issuance of the allotment letter and execution of the BBA could not be sustained. The ruling was delivered by Member Ashok Sangwan on 26.11.2025
The dispute arose from the booking of units in the project M3M Crown Phase-I, Gurugram, where each unit was priced at ₹3.34 crore. The complainants had originally booked a unit in M3M Capital, paying ₹11 lakh, and later shifted their booking to M3M Crown Phase-I following delays in RERA registration of the earlier project. Upon the shift, the complainants paid ₹16 lakh per unit and an additional ₹5 lakh in December 2023, after which the builder issued a revised cost sheet reflecting a net price of ₹2.98 crore
On 04.01.2024, the complainants issued a cheque for ₹17,07,914/- towards 10% of the sale consideration, stating that the cheque was handed over on the assurance that it would be encashed only after the allotment letter was issued and the BBA was executed. However, in March 2024, the developer deposited the cheque without fulfilling these formalities, prompting the complainants to stop payment. They then sought issuance of the allotment letter and BBA through repeated communication, including a legal notice dated 29.10.2024, but the builder did not respond
Instead of issuing the allotment letter, the developer issued refund cheques totaling ₹24.42 lakh out of the ₹32 lakh paid and asked the complainants to accept the refund. The complainants rejected the refund, contending that the cancellation was illegal and that their right to the unit subsisted. They therefore approached the Authority seeking directions to compel issuance of the allotment letter and execution of the BBA
After examining the records, the Authority held that the complainants had not satisfied the financial pre-conditions required for crystallising the booking into a confirmed allotment, as the mandatory 10% of the sale consideration was not successfully paid. The Authority observed that the booking could not progress to allotment in the absence of full payment of the initial agreed amount and remarked that “the complainants stopped payment of the cheque, and accordingly the said booking could not crystallize into allotment”
As no allotment ever came into existence, the Authority held that the complainants could not insist on the issuance of the allotment letter or execution of the BBA.
On the issue of financial prejudice, the Authority found that the cancellation did not cause any demonstrable loss to the developer, especially since the builder had not disclosed any justification for making deductions from the refund. Although refund cheques had been issued after deducting an amount of ₹7,58,000/- on account of a 50-gram gold coin benefit, the Authority held that no such benefit had materialised, and therefore such deductions were unsustainable
Holding that the complainants lacked an enforceable right to demand allotment or execution of the BBA due to non-completion of payment formalities, the Haryana RERA dismissed the complaints. At the same time, since the builder had not demonstrated any financial loss due to the cancellation, the Authority directed M3M to refund the booking amount of ₹16 lakh to each complainant within 90 days without any deductions. With these directions, the cases were disposed of.
Case No: Complaint No. 972 of 2025 and 1 other
Coram: Member Ashok Sangwan
