MahaRERA Gives Westwood Allottees Final 30 Days To Clear Outstanding Dues With Interest, Failing Which Units Will Be Forfeited
Pranav B Prem
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has held that homebuyers who default on payments in the Westwood project at Borivali cannot prevent the promoter from terminating their agreements for sale, while granting them one final opportunity to clear their outstanding dues with interest. Member Mahesh Pathak ruled that an allottee who signs an agreement for sale is statutorily bound to make payments in the manner and within the time specified, and prolonged non-payment entitles the promoter to terminate the agreement in accordance with the Real Estate (Regulation and Development) Act, 2016.
The order dated 2 December 2025 disposed of four complaints filed by Dimple Realtors Private Limited, the developer of the Westwood project (Registration No. P51800034338). The promoter approached MahaRERA on 24 January 2025, seeking directions to execute cancellation deeds against several allottees who, despite reminders, had failed to pay the balance consideration as per stage-wise construction milestones.
Three sets of allottees appeared during hearings, while one remained absent despite service. Only one set of allottees filed a reply; the remaining respondents neither filed written submissions nor produced any documents, prompting the Authority to treat those complaints as uncontested. The contesting allottees argued that the promoter’s demands were premature because slab work was incomplete, and submitted that they were willing to pay once their loans were sanctioned. They also claimed that the promoter had assured assistance in procuring a home loan and relied on Vidyadhar v. Manikrao to contend that non-payment of part consideration does not invalidate a sale agreement.
MahaRERA rejected these defences. It recorded that each allottee had entered into a registered agreement for sale that clearly obligated them to make timely payments and pay interest in case of delay. It found that the allottees had received multiple demand notices, legal notices and termination notices but failed to clear dues. It held that allegations of incomplete construction were unsupported by evidence and that obtaining a bank loan was solely the financial responsibility of the allottee, not the promoter. The Authority also reiterated that the project’s stage of completion — which the promoter reported had reached 73% — justified the demand for instalments raised as per the agreement
Citing Sections 19(6) and 19(7) of the RERA Act, the Authority held that once an allottee executes an agreement for sale, they are legally bound to make payments as per the stipulated schedule, and failure to do so attracts interest. It further held that failure to comply entitles the promoter to terminate the agreement under Section 11(5) by invoking the forfeiture clause for liquidated damages. However, noting the principles of natural justice, MahaRERA granted the allottees “one last opportunity” to retain their units by paying the outstanding dues with applicable interest within 30 days from the date of the order. It directed:
Failure to make full payment with interest within 30 days will entitle the promoter to terminate the agreements and forfeit the units.
Upon termination, the allottees will be liable to execute and register cancellation deeds within a further 30 days once called upon by the promoter; failing which, the promoter may seek penal action under Section 67 of RERA
All four complaints were accordingly disposed of with these directions.
Appearance
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
Cause Title: Dimple Realtors Pvt. Ltd. v. Jaymanav Singh & Ors.
Case No: CC12500250, CC12500251, CC12500252, CC12500253
Coram: Member Mahesh Pathak
