MahaRERA Upholds Builders' Right to Cancel Sale Agreements for Payment Defaults

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has upheld the right of builders to cancel registered agreements for sale when homebuyers repeatedly default on payments. In an order dated December 18, 2025, a coram of Chairman Manoj Saunik decided six complaints arising from the “Sunteck West World” residential project at Naigaon East, Palghar district.

The complaints were filed by homebuyers who had entered into agreements with Sunteck Realty for the purchase of apartments in the Sunteck West World project. The buyers had failed to make timely payments, leading Sunteck Realty to initiate the cancellation of their agreements. The homebuyers contested these cancellations, arguing that they had been misled and that the builder had not provided adequate notice.

MahaRERA, after a thorough review of the cases, ruled in favor of Sunteck Realty. The authority stated that the agreements signed by the homebuyers clearly outlined the payment schedules and the consequences of defaulting on these payments. The builder had provided multiple notices and opportunities for the buyers to fulfill their financial obligations, but the buyers failed to do so.

Chairman Manoj Saunik emphasized that builders have the right to protect their interests and ensure the smooth completion of projects. He noted that the regulatory authority is committed to maintaining a fair and transparent real estate market, but this does not mean that buyers can ignore their contractual responsibilities.

The decision by MahaRERA is significant as it sets a precedent for future cases involving payment defaults. It highlights the importance of adhering to the terms and conditions of sale agreements and the consequences of failing to meet these obligations. Homebuyers are advised to carefully read and understand the agreements they sign and to make timely payments to avoid legal complications.

Sunteck Realty, a prominent real estate developer in Maharashtra, has been involved in several high-profile projects across the state. The company is known for its commitment to quality and timely delivery, and this ruling is expected to reinforce its position in the market. The decision is also likely to encourage other builders to take a firmer stance on payment defaults, knowing that they have the regulatory support to enforce their rights.

In conclusion, the MahaRERA ruling serves as a reminder to both homebuyers and builders about the importance of adhering to contractual agreements. It underscores the need for transparency and accountability in the real estate sector, ultimately contributing to a more stable and reliable market for all stakeholders.