Major setback for M3M as Haryana REAT revokes cancellation of 3 units over unpaid dues

In a major setback for M3M, HREAT quashed unit cancellation orders after finding promoter Manglam Multiplex Private Limited in direct breach of buyer agreement terms. Specifically, the Haryana Real Estate Appellate Tribunal (HREAT) in Panchkula overturned an earlier HRERA Gurugram ruling that supported the developer. Furthermore, the appellate bench ordered the promoter to hand over possession of the commercial units to the home buyers within 90 days.

M3M faces legal defeat over illegal 15-day cancellation notice

A tribunal bench comprising Chairman Justice Rajan Gupta and Technical Member Dinesh Singh Chauhan ruled on three connected appeals filed by affected buyers. Specifically, the case involved unit allottees Neeraj and Vandana Bhagat, Amarjit Singh, and Varun and Tanu Ahuja in Sector 65, Gurugram.

The tribunal observed that Clause 9.3 of the builder-buyer agreement mandated a 90-day grace period to clear outstanding dues. Additionally, the developer was required to provide at least 30 days of advance notice before executing any allotment cancellation.

Appellate tribunal orders promoter to hand over commercial units

Consequently, the tribunal declared the December 10, 2021 cancellation letters completely illegal and void. The developer issued pre-cancellation notices on November 25 and cancelled the allotments just 15 days later, depriving buyers of their contractual remedy window.

Furthermore, HREAT directed Manglam Multiplex to hand over possession upon payment of legitimate dues and settlement of accounts. Meanwhile, in the lead appeal, the allottees had already paid ₹1 crore out of a total sale consideration of Rs 3 crore.