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September 2026

Ruma Mehta & Ors v. Parorch Developers LLP : Allotment letters with clear property descriptions and payment schedules constitute valid contracts, enforceable retroactively under the RERA Act.

By Jagdish Punjabi, Chartered Accountant | Ritu Punjabi, Advocate
Reading Time 4 mins

5. MANU/RT/0304/2026

Maharashtra Real Estate Appellate Tribunal

Ruma Mehta & Ors v. Parorch Developers LLP

Date of Order: 09.06.2026

An allotment letter that discloses the description of the property, flat, consideration amount, payment schedule, and terms and conditions, etc. fulfils all the ingredients of a valid and concluded contract for sale and purchase, which is enforceable under the provisions of the Act.

Since the Act is retroactive, an allotment letter issued prior to coming into force of the Act is enforceable under the Act.

FACTS

The Appellant booked a flat in the project of the Respondent for a consideration of Rs 3.75 crore by paying a sum of Rs 1.00 crore on 17.2.2014 by cheque. Upon receiving the said payment, the Respondent / Promoter confirmed that it will issue an allotment letter and called for further payments. The Appellant paid two more instalments. Thereafter, allotment letter dated 22.4.2014 was issued. The Promoter assured possession of the said flat by mid-2017. The Appellant thereafter paid further amounts to the Respondent making aggregate o

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