A builder cancelled three Gurugram units after 15 days' notice.The tribunal said no.
On October 9, 2026, Hindustan Times reported a ruling by the Haryana Real Estate Appellate Tribunal in Panchkula. It cancelled the cancellation of three units in M3M 65th Avenue, Sector 65, Gurugram. The builder had not followed the notice and waiting-time steps written in its own agreement. If you ever fall behind on an instalment, this ruling shows why your agreement's cancellation clause matters.
What the tribunal decided.
A tribunal is a special court. The Haryana Real Estate Appellate Tribunal, or HREAT, hears appeals against orders of the state's property regulator, HRERA. In this case, the appeal was against an HRERA Gurugram order about three units whose allotments the builder had cancelled. The tribunal set that order aside.
According to Hindustan Times, the builder had cancelled the units without following the notice and waiting-time steps in its own builder-buyer agreement. That agreement is the contract between the buyer and the builder. The tribunal said the buyers had to be given 90 days to clear their dues. After that, the builder had to give at least 30 days' advance notice before cancelling.
Here is the sequence the tribunal noted. The project received its occupation certificate on September 30, 2021. That is the paper from the authorities saying a building is fit to be lived in. The agreed possession date was June 2022. On October 25, 2021, the builder sent a final demand for money together with an offer of possession. On November 25, it sent a pre-cancellation letter. That is a warning that the unit may be cancelled. The cancellation followed just 15 days later.
The tribunal said this was a clear violation of Clause 9.3 of the agreement. In the lead appeal, the total sale price was ₹3 crore, and the buyers had paid ₹1 crore.
PropertyNivesh, a property news site summarising the Hindustan Times report, adds that the tribunal set aside a July 23, 2024 order of HRERA Gurugram. It also reports that the builder, Manglam Multiplex Pvt Ltd, must hand over the units within 90 days once the buyers pay their outstanding dues and the accounts are settled. So the ruling gives the buyers time and a fair process. It does not wipe out what they owe.
I have not read the tribunal's full order. This summary relies on the news reports below. Sources: Hindustan Times, "Haryana real estate tribunal sets aside RERA's order cancelling three Gurugram units" (Oct 9, 2026); PropertyNivesh (Oct 9, 2026); M3M India project page.
Where the 15 days went wrong.
The tribunal looked at the dates in the builder's own letters and compared them with the agreement.
| When | What happened |
|---|---|
| Sep 30, 2021 | Occupation certificate received for the project. |
| Oct 25, 2021 | Builder sends a final demand for payment together with an offer of possession. |
| Nov 25, 2021 | Builder sends a pre-cancellation letter. This is a warning that the unit may be cancelled. |
| About 15 days later | Builder cancels the three units. The tribunal later says this broke Clause 9.3 of the agreement. |
| Jun 2022 | The possession date that had been agreed in the contract. |
| Jul 23, 2024 | HRERA Gurugram order, which the tribunal has now set aside (as reported by PropertyNivesh). |
| Oct 9, 2026 | Hindustan Times reports the tribunal's decision. |
Sources: Hindustan Times (Oct 9, 2026); PropertyNivesh (Oct 9, 2026).
A builder can cancel, but only the way the agreement says.
RERA is the Real Estate (Regulation and Development) Act of 2016. Three of its rules matter here.
Section 19(6): a buyer is responsible for making the payments "in the manner and within the time" given in the agreement for sale. So buyers do have a duty to pay on time.
Section 19(7): a buyer who pays late is liable to pay interest, at the rate prescribed, for the delay.
Section 11(5): the builder "may cancel the allotment only in terms of the agreement for sale." The same section lets a buyer go to the regulator if the cancellation is not in line with the agreement, is one-sided and has no good reason behind it.
Put simply, the law lets a builder cancel for non-payment, but the steps in the agreement set the rules. In this case the tribunal found those steps were not followed.
Source: Real Estate (Regulation and Development) Act, 2016, Sections 11(5), 19(6) and 19(7), as published on India Code (indiacode.nic.in).
Five things to do if you fall behind.
This is general guidance, not legal advice. It is based on what the news reports say the tribunal looked at.
Open your builder-buyer agreement and look for the part on non-payment or cancellation. In this case it was Clause 9.3. Your clause number may be different. Read what notices the builder must send and how many days must pass between them.
If you get a demand notice or a pre-cancellation letter, write down the date you received it. Then compare it with the days your agreement allows. The 15-day gap in this case is what the tribunal pointed to.
A short email or letter that states what you will pay, and when, leaves a record. Keep proof that it was sent. A phone call leaves nothing to show later.
Under Section 19(6) you still have to pay on time, and under Section 19(7) late payment can carry interest. The buyers in this case still had to pay their outstanding amount before getting the units.
Section 11(5) lets a buyer approach the regulator if a cancellation is not in line with the agreement. A property lawyer can read your actual papers. The outcome in one case may not apply to yours.
What this ruling does not tell you.
It was decided on the words of one agreement and one set of letters. Your agreement may say something different, so the 90-day and 30-day figures are not a rule for every buyer.
It was about M3M 65th Avenue. M3M's own project page describes it as a retail and commercial project, so these were not apartments in a housing society. I have not seen the order itself, so I cannot say how the tribunal applied the RERA sections above.
The news reports I found do not say whether the other side will challenge the decision.
Read the exit clause before you sign, not after you get a notice.
Most buyers read the price, the payment plan and the possession date. The cancellation clause tends to get skipped, because nobody expects to need it.
My advice is to read it before you sign. Check how many days you get to pay after a missed instalment. Check what notices come first. Check what happens to the money you have already paid. If anything is unclear, ask for it in writing and have a property lawyer look at it.
If you are about to book and want a second pair of eyes on the payment plan and timelines, message me. I can point out what to ask the builder. For the legal reading of the clause itself, please use a lawyer.
Frequently asked questions.
What did the Haryana tribunal decide about cancelled units in Gurugram?
Does this mean a builder cannot cancel my flat if I miss an instalment?
Do I still have to pay what I owe?
Is 90 days the rule for every project in Gurgaon?
What is a pre-cancellation letter?
This post summarises public news reporting and is not legal advice. For a specific dispute, speak to a property lawyer.
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