Demand letters issued by Promoter for payment of balance amount without executing an agreement for sale are in violation of Section 13 of RERA and unlawful – S.M. Infrastructures Vs. Feroza Noor Mohammed Shaikh and Anr. – Maharashtra REAT

Hon’ble Maharashtra REAT held that: (i) Despite not executing and registering the agreement for sale, the Promoter kept on sending to the Allottee demand notices for payment as per the payment schedule in the allotment letter. Such demand letters without executing and registering the agreement for sale are also in violation of Section 13 of RERA and therefore are unlawful. (ii) In the absence of formal agreement executed by the parties, the date of possession can be deciphered from any documents such as allotment letter, brochure, pamphlet, email communications, letter of intent, etc. A perusal of the allotment letter would show that there is no mention of date of possession.

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