In a recent ruling, the Haryana Real Estate Regulatory Authority (Haryana RERA) directed Raheja Developers to refund the payments made by two homebuyers for flats in the Raheja Revanta project, along with interest. The homebuyers had anticipated receiving possession of their flats by July 2019.
Background
The complainants had purchased flats in the Raheja Revanta project, located in Sector 78, Gurugram, under an agreement dated January 17, 2017. The total cost for the flats was ₹2,66,61,925, of which ₹1,88,89,764 had already been paid.
According to Clause 4.2 of the agreement, possession was to be handed over within two years from the agreement date, with an additional six-month grace period. Despite receiving 66% of the payment, the builder failed to deliver possession within the promised timeframe.
Additionally, the homebuyers reported being charged ₹3,50,000 for covered parking, a charge they contended was illegal since parking spaces should be part of the common area and not sold separately.
Feeling aggrieved, the homebuyers filed a complaint with Haryana RERA, seeking a full refund of their payments, along with interest and ₹1 lakh in litigation costs.
Observations and Directions
The Authority referred to Clause 4.2 of the sale agreement, which stipulated possession delivery within 36 months for Tapas units and 24 months for Surya Tower units from the agreement date.
According to Section 18(1) of the Real Estate Regulation and Development Act (RERA) 2016, if a builder fails to deliver possession as per the agreement or discontinues business, they are required to refund the amount received, along with prescribed interest and compensation, if the homebuyer chooses to withdraw from the project. If the homebuyer opts not to withdraw, they are entitled to interest for each month of delay until possession is handed over.
The Authority noted that, based on the agreement’s Clause 4.2, possession was due by July 17, 2019. Since the construction remains incomplete even after five years, the homebuyers are not expected to wait indefinitely. Therefore, the Authority ordered the builder to refund the amount paid by the homebuyers with interest at 11% per annum for the delay.
Posted and reproduced in Public Interest by
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