Court finds allottee failed to prove actual payment of stamp duty and registration charges; developer must refund booking amount of Rs. 12.30 lakh with interest
Mumbai, Sept. 23, 2026: The Bombay High Court has overturned orders of the Maharashtra Real Estate Regulatory Authority (Maha RERA) and the Maharashtra Real Estate Appellate Tribunal that had directed JP Builders and Developers to execute a registered agreement for sale in favour of allottee Santosh Amarsingh Sandhu for a flat of his choice.
Justice Sandeep V. Marne, deciding cross appeals filed by both sides, held that the allottee failed to prove that he had actually paid stamp duty and registration charges required for execution of the agreement. The court found that merely transferring money to a bank account did not amount to payment of stamp duty when no challan was generated and no amount reached the stamp or registration authorities.
The dispute arose from an allotment originally made to the Kharatmols, who had paid Rs. 12.30 lakh to the developer. After they stepped away from the booking, Santosh Sandhu entered into a fresh arrangement with the developer and was issued a new allotment letter in 2013. Later, after revised plans were sanctioned in 2019, the developer asked him to complete registration formalities and pay the stamp duty and registration fees. According to the court, the allottee repeatedly expressed financial inability to pay and later falsely claimed payment without producing proof.
The High Court noted that the developer had issued several notices between May and July 2019 asking the allottee to execute the agreement and pay the necessary charges. When no valid proof of payment was furnished, the developer terminated the transaction by notice dated July 30, 2019. The court held that this termination was valid, observing that the promoter was “always ready and willing” to execute the agreement, while the allottee failed to cooperate.
The court also criticised Maha RERA and the Appellate Tribunal for mechanically relying on Section 13 of the Real Estate (Regulation and Development) Act, 2016 without examining whether stamp duty had in fact been paid. It set aside the direction requiring the promoter to execute an agreement for another flat chosen by the allottee.
However, the court granted partial relief to the allottee by directing the developer to refund Rs. 12.30 lakh, the amount actually proved to have been paid, along with interest at SBI’s MCLR plus 2% from July 12, 2016 until actual payment. The court rejected the allottee’s claim that amounts allegedly paid by the earlier allottees should be adjusted in his favour, holding that there was no contractual stipulation or reliable proof supporting such adjustment.
In the result, the High Court partly allowed the developer’s appeal and dismissed the allottee’s appeal, bringing an end to the RERA-backed claim for execution of the sale agreement.
Bottom Line :
RERA - Promoter cannot be compelled to execute Agreement for Sale where allottee failed to actually pay stamp duty and registration charges and promoter was otherwise ready and willing to execute the agreement - Termination of allotment held valid - However, promoter directed to refund booking amount with interest - Amount paid by earlier allottees cannot be adjusted in favour of subsequent allottee in absence of contractual stipulation and proof.
Statutory provision(s): Real Estate (Regulation and Development) Act, 2016, Section 13
JP Builders and Developers v. Santosh Amarsingh Sandhu, (Bombay) : Law Finder Doc id # 2984252
