Provisional Allotment Alone Does Not Confer Allottee Status, Rules Haryana RERA
Gurugram, August 22, 2026: The Haryana Real Estate Regulatory Authority (HRERA), Gurugram has ruled that the mere payment of a booking amount and the issuance of a provisional allotment letter do not automatically confer the status of an “allottee” under the Real Estate (Regulation and Development) Act, particularly when the allotment remains conditional upon executing an Agreement for Sale, HRERA said in a press release.
The ruling came during the hearing of Neet Rash Consultants LLP v. Eldeco Infrastructure and Properties Ltd. & Anr., a dispute centered around a unit in the Eldeco Fairway Reserve project located in Gurugram. The bench noted that the allotment was explicitly provisional and subject to the execution and registration of an Agreement for Sale. Because the agreement was never executed despite multiple reminders, the promoter subsequently cancelled the provisional allotment.
Appearing for the promoter, Harshit Batra, Advocate, submitted that the complainant could not claim the statutory status of an allottee when the provisional allotment itself was conditional upon execution of the Agreement for Sale and the requisite agreement had never been executed. Countering these claims, Aditya Jain, Advocate, appearing for the complainant, advanced submissions challenging the promoter’s action and sought reliefs under the RERA framework.
Evaluating the arguments, the Haryana Real Estate Regulatory Authority (HRERA), Gurugram observed that in the absence of a final allotment and an executed Agreement for Sale, the transaction had not crystallised into the statutory relationship of promoter and allottee contemplated under RERA. Consequently, the bench dismissed the complaint and upheld the promoter’s decision to cancel the provisional allotment.
The judgment establishes a legal precedent for developers and property buyers across the state by defining the distinction between a preliminary booking and a concluded allotment under RERA. It also emphasizes the importance of clear contractual conditions governing provisional allotments and the mandatory execution of an Agreement for Sale.
