Delay Of 8 Years In Handing Over Possession Of Plot, Haryana RERA Orders Vatika Ltd To Refund

Background Facts

The Complainant booked a plot in the builder's (Respondent) project named Vatika India Next. A Plot Buyer Agreement was executed between the builder and the Complainant on 15.03.2011. The total sale consideration for the plot was Rs. 49,20,000/-, out of which the Complainant paid Rs. 43,82,400/- to the builder.

The Complainant contended that the builder failed to comply with the agreement's terms even after receiving over 70% of the total consideration. Despite the Complainant's timely payments and attempts to address grievances, the builder unilaterally revised the project's layout without prior notice, forcing the Complainant to undergo a re-allotment process.

The Complainant further contended that she faced additional difficulties as the builder pressured her into accepting any available plot, threatening the loss of allotment. Despite her efforts, the Complainant received only false promises, resulting in significant financial and emotional distress. After 11 years, the Complainant still has not received possession of any plot. The builder offered a refund but continued to advertise the plots for sale.

Therefore, being aggrieved, the Complainant filed a complaint before the authority seeking possession of her plot and interest for the delayed possession.

Observation and Direction by Authority

Based on the submission of the builder's counsel, Authority noted that there is no plot left on this project which could be allotted to the complainant, and held that since the builder cannot provide the plot that was promised or expected as per the buyer's agreement the only option left with the authority is to grant full refund to the complainant under the section 18(1) of RERA, 2016.

The Authority referred to Section 18(1) of the Real Estate Regulation and Development Act 2016, which states:

18. Return of amount and compensation.

(1) If the builder fails to complete or is unable to give possession of an apartment, plot, or building—

(a) in accordance with the terms of the agreement for sale or, as the case may be, duly completed by the date specified therein; or

(b) due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this Act or for any other reason, he shall be liable on demand to the homebuyers, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment, plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf including compensation in the manner as provided under this Act:

Provided that where an allottee does not intend to withdraw from the project, he shall be paid, by the builder, interest for every month of delay, till the handing over of the possession, at such rate as may be prescribed.

Furthermore, Authority also referred Clause 10 of the plot buyer agreement which stipulated in brief that the builder is supposed to complete the development of the township, including the plot, within three years from the agreement's execution, barring delays beyond their control or the allottees failure to pay or comply with the agreement's terms.

The authority held that, according to Clause 10 of the agreement, possession of the plot was expected to be delivered within three years from the date of execution. Based on this, the possession date should have been 15.03.2014, which means there is a delay of more than 8 years by the time the complaint was filed.

Therefore, the authority directed the builder to refund the amount paid by the complainant (Rs. 43,82,400/-) with 11% interest within 90 days.

Case - Dr. Dolly Chopra Versus M/S Vatika Limited

Citation - Complaint No 6578 of 2022