Case Title: Ashish Yadav Versus Cosmos Infra Engineering India Pvt. Ltd
Case Number: Complaint No : RAJ/RERA/C-N-2023-6153
The Rajasthan Real Estate Regulatory Authority, led by Chairperson Veenu Gupta, recently made a ruling concerning a dispute between a homebuyer and a real estate developer. The case centered around the failure of the developer to deliver a flat on time, and the consequent request by the homebuyer for a refund.
In this case, the homebuyer had purchased Flat No. 303 in Tower A of Ashoka Cosmos, a real estate project by the developer. The total cost of the flat was Rs. 38,68,400. According to the terms of the sub-lease agreement, the developer was supposed to hand over the flat within 42 months from the date the agreement was signed or when construction began, whichever came later. This included a grace period of 180 days and was expected to be fulfilled by 01.10.2018.
However, despite the homebuyer making payments totaling Rs. 40,76,609 (inclusive of taxes) towards the flat’s cost, the developer failed to deliver the flat on time. This prompted the homebuyer to approach the Real Estate Regulatory Authority for a total refund, alongside interest and litigation costs amounting to Rs. 1 lakh.
In defense, the developer argued that they completed the flat in 2019 and had obtained the completion certificate by 30.06.2021. They claimed to have made offers for possession in 2019, 2020, and 2022, which were all accepted by the homebuyer. As such, they urged the homebuyer to take possession of the flat.
Upon review, the Authority noted that the completion certificate for the project was indeed issued on 30.06.2022 and that multiple offers for possession had been made to the homebuyer. They concluded that issuing a refund at this stage, given that the project was completed, could potentially harm the overall progression of the real estate project.
Therefore, the Authority decided that the homebuyer should take possession of the flat. However, they also acknowledged that the delay in the project entitled the homebuyer to receive interest from the developer from the possession date mentioned in the sub-lease agreement until the date when the offer for possession was made.
Consequently, the Authority ordered the builder to pay interest from 01.10.2018 to 18.05.2022 at a rate of 10.85%.
Takeaway: Even if a real estate project is delayed, homebuyers have a right to receive interest for the delay period. However, if the project is completed, a refund may not be granted due to potential adverse impacts on the project’s progress.
