Gurugram RERA Sets Aside Neo Developers’ Unit Cancellation Notice, Ordering Assured Returns And Conveyance Deed Execution
Gurugram, July 9, 2026: A bonafide allottee turned complainant has heaved a big sigh of relief after the Real Estate Regulatory Authority (RERA), Gurugram, officially set aside a unit cancellation notice issued by Neo Developers Private Limited. While deciding the case of Suman Lata versus Neo Developers Private Limited, the regulatory body declared the builder’s action completely invalid. The complainant had approached the Authority to plead that the builder had canceled her allotted commercial unit despite her having already paid a substantial amount toward the property, Gurugram RERA said in a press release.
Upon reviewing the facts, the Authority viewed that the cancellation of the unit was invalid as the complainant had already paid a substantial amount of Rs. 84,00,000/- out of a total basic sale consideration of Rs. 75,00,000/-. The complainant, who had booked the commercial unit in the “Neo Square” project in Sector 109, Gurugram, had sought the quashing of the cancellation and a formal direction from the Authority to compel the builder to respect the original commitments made in the Builder-Buyer Agreement (BBA) and Memorandum of Understanding (MoU) signed between them.
In its final order, the Authority directed Neo Developers to pay the assured returns (AR) to the complainant at the agreed rate of Rs 1,08,615/- per month with effect from October 10, 2020, until a valid offer of possession is made, after deducting any amounts already paid on account of assured returns. Furthermore, the promoter has been directed to pay the outstanding accrued assured return amount at the agreed rate within 90 days from the date of the order, after the adjustment of any outstanding dues.
The regulatory body also placed strict boundaries on what the developer could charge the buyer moving forward, specifically referencing apex court jurisprudence regarding construction levies. The order said that the respondent shall not charge anything from the complainant, which is not part of the MoU or buyers’ agreement. The respondent is not entitled to charge Labour cess from the complainant at any point of time even after being part of the builder buyer’s agreement as per law settled by Hon’ble Supreme Court in Civil Appeal nos. 3864-3889/2020 on 14.12.2020,” said the order.
Concluding the judgment, the promoter was directed to handover possession of the unit to the complainant in terms of the MoU as well as buyer’s agreement executed between them on payment of outstanding dues if any, within 60 days. Additionally, Neo Developers must ensure that the conveyance deed is formally executed within three months from the date of the order, successfully restoring the allottee’s commercial property rights.
