No Misrepresentation By Godrej Developers, Haryana RERA Refuses To Provide Refund Of Booking Amount To Homebuyer

Background Facts

The homebuyer (Complainant) booked a 3 BHK flat in the builder's (Respondent) project named Godrej Air through an application form dated June 16, 2019, paying Rs. 5 lakhs. The total consideration for the flat was Rs. 1,42,92,073.

However, at the time of booking, the homebuyer was unaware that the Godrej Air project was a joint venture between Godrej Properties Limited and Orris Infrastructure. The homebuyer believed that the project was solely developed and marketed by the builder.

Upon discovering the joint venture, the homebuyer informed the builder via email on March 7, 2020, expressing their desire to cancel the booking due to the bad reputation and track record of Orris Infrastructure Private Limited. Homebuyer demanded a full refund of the Rs. 5 lakh token money paid.

For over two years, the builder took no action regarding the homebuyer's refund request. In February 2022, the homebuyer was called for a meeting with the builder's representatives, who convinced them to continue with the project.

However, more than two years and three months after the refund request, the builder sent a cancellation notice for the flat on June 14, 2022, forfeiting the entire Rs. 5 lakh token money.

The homebuyer objected to the cancellation notice dated June 14, 2022, as they had been convinced by the builder's representatives in the meeting to continue with the project. Aggrieved by the cancellation of the booked flat, the homebuyer filed a complaint before the authority seeking a refund of the Rs. 5 lakh token money with interest from the date of the deposit.

Contentions of Builder

The builder contended that the homebuyer knew about Orris Infrastructure's involvement from the start, even before signing the application form. The builder pointed out that the first page of the application form clearly mentions "Joint Venture Partner Orris Infrastructure."

Additionally, the builder argued that the homebuyer failed to make timely payments after paying the booking token amount. Because the homebuyer couldn't pay the total consideration for the flat, they are now seeking a unilateral cancellation of the flat allotment.

Observation and Direction by Authority

The authority observed that the application form was signed by the homebuyer on June 20, 2019, and the very first page of both the application form and brochure clearly mentioned Joint Venture with Orris Infrastructure. Furthermore, the authority noted that the project is registered with the Haryana Real Estate Regulatory Authority, and the registration number was included on the application form.

The authority referred to Section 12 of The Real Estate (Regulation and Development) Act, 2016, which reads as follows:

Section 12: Obligations of promoter regarding veracity of the advertisement or prospectus

12. Where any person makes an advance or a deposit based on the information contained in the notice, advertisement, or prospectus, or based on any model apartment, plot, or building, as the case may be, and sustains any loss or damage due to any incorrect or false statement included therein, he shall be compensated by the promoter in the manner provided under this Act.

Provided that if the person affected by such incorrect or false statement contained in the notice, advertisement, or prospectus, or the model apartment, plot, or building, as the case may be, intends to withdraw from the proposed project, he shall be returned his entire investment along with interest at such rate as may be prescribed and the compensation in the manner provided under this Act.

The authority also observed that the details of the project were available in the public domain and accessible to everyone. Therefore, the authority rejected the homebuyer' allegation of misrepresentation by the builder regarding the collaboration between Godrej Properties Limited and Orris Infrastructure Pvt. Ltd. Consequently, the authority refused to provide a refund of Rs. 5 lakhs.

Case – Neeraj Singh Bhadouria & another Versus M/s Godrej Developers and Promoters LLP

Citation - Complaint No. 6333 of 2022