Order Name: Dr. Vivek Mahendru S/o Devi Dass Mahendru (Through SPA holder Vijay Kapur) Versus M/s Raheja Developers Limited
Case No.: Complaint No. 1660 of 2023
A ruling from the Haryana Real Estate Regulatory Authority (the Authority), represented by Ashok Sangwan, a member of the bench, has come down hard on a developer for not delivering on the promise of a home to a buyer. The builder’s inability to provide the property even after more than seven years led the Authority to order a full refund of the amount the homebuyer paid.
The homebuyer had secured a flat in Raheja’s Revanta, a housing project in Sector 78, Gurugram. The agreement to sell the property was drawn up on May 17, 2012, with the total purchase price being Rs. 71,47,56,725/-. Of this amount, the homebuyer had handed over Rs. 1,45,54,970.37/- to the builder.
According to the agreement, the builder was required to give the homebuyer possession of the flat within three years of the agreement date. Regrettably, even after more than seven years, the project was nowhere near completion.
Unable to tolerate the delay any longer, the homebuyer decided to withdraw from the project. On September 3, 2022, he sent a legal notice to the builder, applying Section 18 of the Act, 2016, requesting a refund of his Rs. 1,45,54,970.37/- payment, plus interest.
When the builder neglected to respond to the notice, the homebuyer brought his complaint to the Authority, seeking a full refund of his payment, plus interest.
Looking into the matter, the Authority found that according to the agreement, possession of the property should have been transferred to the homebuyer within 48 months, including a grace period. As a result, the builder was in violation of the RERA, 2016 provisions.
The Authority noted that more than seven and a half years have now passed, and yet the construction is incomplete, and the homebuyer has not been offered possession of his unit. The Authority felt that the homebuyer should not be left hanging indefinitely, especially considering the significant sum he has already paid.
The Authority also pointed out that the builder has yet to secure the occupation certificate for the project.
In making its decision, the Authority cited a Supreme Court order in the case of Ireo Grace Realtech Pvt. Ltd. vs. Abhishek Khanna & Ors (Civil Appeal No. 5785 of 2019). The court had ruled that a lack of an Occupation Certificate constitutes a service deficiency. The allottees cannot be expected to wait indefinitely for their apartments, nor can they be compelled to accept apartments in Phase 1 of the project.
As a result of these findings, the Authority has ordered the builder to refund the homebuyer the full amount of Rs. 1,45,54,970.37/-, with interest at a rate of 10.85% per year, within 90 days.
The takeaway from this ruling is a clear message to developers that delaying projects and failing to deliver homes as promised can lead to significant financial penalties. For homebuyers, it serves as a reminder to understand the terms of their agreements and to know their rights under the law.
