The Rajasthan Real Estate Regulatory Authority (RERA) has instructed Sahara Prime City Limited to refund amounts paid by four homebuyers for flats in the Sahara City Homes project in Jaipur due to delayed possession.
Background
Homebuyers had booked flats B8/904, B5/502, C4/701, and C8/701 in the Sahara City Homes project and paid a total of Rs. 90,13,381. Despite full payment, the builder failed to deliver the flats on time, prompting the homebuyers to seek refunds with interest through RERA.
Sahara City Homes’ Defense
Sahara argued that the delay was due to a legal dispute with the Securities and Exchange Board of India (SEBI) starting in 2010. In November 2013, the Supreme Court restricted Sahara Group from dealing with its assets, impacting their ability to complete the project.
RERA’s Ruling
RERA observed that, as the Real Estate (Regulation and Development) Act, 2016 was in effect during the project’s construction, it had jurisdiction over the matter. The authority directed Sahara to register the project under RERA’s provisions and process the refunds.
The Authority cited the Supreme Court ruling in M/s Newtech Promoters and Developers Pvt. Ltd vs. State of Uttar Pradesh & Ors [LL 2021 SC 641], which established that if a builder fails to deliver possession of an apartment, plot, or building within the agreed timeframe, the homebuyer’s right under RERA, 2016 to seek a refund or claim interest for the delay is both unconditional and absolute.
As a result, the Authority has directed the builder to refund the amounts paid by the homebuyers for their flats, along with interest at a rate of 8.85% per annum, within 45 days.
Posted and reproduced in Public Interest by
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