Gurgaon: Haryana Real Estate Regulatory Authority (HRera) has upheld the termination of a flat allotment in ATS Marigold for non-payment. Chairman Arun Kumar, on Oct 13, rejected the buyers’ plea for possession and delayed-possession interest, but directed the builder to refund their money after deducting 10% of the sale price as earnest money.The Rera order came on a complaint filed in July 2025 by city residents Naresh Pal Singh and Geeta Singh against ATS Real Estate Builders. They had booked apartment 4191 — a 1,750 sqft unit on the 19th floor of Tower 4 in Sector 89A — under an agreement dated Nov 19, 2020, for Rs 96 lakh. They paid over Rs 10 lakh, about 10.5% of the total price.ATS told the authority that the buyers defaulted on a possession-linked payment plan despite reminders on Dec 15 and 21, 2020 and Jan 2, 2021, each citing dues of over Rs 20 lakh. It terminated the allotment on Feb 2, 2021 and sold the unit to Chetan Wadhwa under an agreement dated May 5, 2021. The project got its occupation certificate on June 16, 2023 and possession was offered to Wadhwa on March 24, 2024.The builder argued the complainants had ceased to be allottees, never challenged the termination and approached the authority over five years later. The buyers had sought restoration of their booking, physical possession and interest for delay. HRera noted they failed to pay as per the agreed plan despite several opportunities and that third-party rights had since been created. It held the termination valid, observing that the contractual relationship had ended, and rejected all three pleas.The authority, however, ruled that the builder could not keep the entire amount. Citing Supreme Court rulings in Maula Bux and Sardar K B Ram Chandra Raj Urs, along with consumer commission decisions, it said forfeiture must be reasonable and 10% of the sale price is accepted as earnest money. It also pointed to its 2018 regulations, which cap forfeiture at 10% of the consideration. Nothing on record showed any refund had been made. ATS has been directed to refund the amount paid after deducting 10% of the basic sale consideration, with interest at 10.8% per annum from July 16, 2025, the date of filing, until the money is actually repaid to the buyers. The builder has 90 days to comply, failing which legal consequences would follow.
