Failure To Obtain Environmental Clearance, Haryana RERA Orders Ocean Seven Buildtech To Provide Refund To Homebuyers

Background Facts

The homebuyers (Complainants) were allotted a flat with a 571 sq. ft. carpet area in the builder's (Respondent) affordable group housing colony named The Venetian, situated in Sector 70, Gurugram, through an allotment letter dated 09.03.2021.

The total sale price of the flat was Rs. 22,33,420, of which the homebuyers paid Rs. 11,78,381 to the builder. The homebuyers contended that, even after 30 months, construction in the project had not started, and the builder had yet to receive environmental clearance for the project.

Aggrieved by the delay, the homebuyers decided to withdraw from the project and demanded a refund of their money through a letter dated 12.09.2023. However, they did not receive any refund from the builder. Consequently, the homebuyers filed a complaint before the authority seeking a refund of the amount paid, along with interest.

Contentions of Builder

The builder argued that the Authority lacks jurisdiction to adjudicate the present complaint because, according to Clause 16.2 of the builder-buyer agreement, both parties had agreed to resolve any disputes through arbitration.

The builder also contended that the homebuyers are wilful defaulter who deliberately, intentionally, and knowingly failed to pay the installments on time.

Observation and Direction by Authority

The Authority referred to Clause 5(iii)(h) of the Affordable Housing Policy, 2013, which specifies the percentage of the amount that will be forfeited if a homebuyer surrenders the flat.

However, since the flat was surrendered due to the builder's failure to obtain the environmental clearance, the Authority applied Clause 5(iii)(b) of the Affordable Housing Policy, 2013, as amended in 2015. This clause stipulates that if the builder fails to obtain environmental clearance within one year of the draw, the builder must refund the amount deposited by the homebuyers, along with 12% interest, if the homebuyer desires.

The Authority rejected the builder's contention that the homebuyers was a wilful defaulter. The Authority held that, according to Clause 5(iii)(b), the builder was supposed to receive further installments only after obtaining the environmental clearance.

Therefore, the Authority directed the builder to refund the amount paid by the homebuyers, as per Clause 5(iii)(b) of the Affordable Housing Policy, 2013, with 11% interest per annum from the date each payment was made until the date the builder actually refunds the total amount to the homebuyers.

Case – Kamla Chauhan V/s Ocean Seven Buildtech Pvt. Ltd. A/W 1 other

Citation – Complaint no 4541 of 2023 A/W 1 other