Himachal RERA Orders Full Refund , Rejecting Builder's Contention Of Deducting 10% Of The Flat's Cost As A Booking Charge

Background Facts

The homebuyer invested Rs. 10,01,001 to purchase an apartment (Flat no 402) in the Builder's Housing project named “Mashobra Hills” situated in Shimla. On November 2, 2023, the Builder forwarded the agreement for sale to the homebuyer. Upon reading the terms and conditions, the homebuyer realized significant variations in the agreement compared to what was discussed and finalized by the builder via email and brochure.

Subsequently, after the homebuyer raised her concerns, the builder agreed to address the issues related to the agreement for sale. However, they failed to reach any resolution. Feeling aggrieved by this, the homebuyer seeks refund of the investment amount along with the imposition of a monthly interest rate of 1% from the Himachal Real Estate Regulatory Authority (RERA).

Contention of the Parties

The homebuyer contended that the sales director of the builder, who served as the point of contact, assured them that the entire housing project was duly approved, legally sound, and free from all encumbrances. Relying on this statement and assurance, the homebuyer deposited an advance amount to book an apartment in her favor. However, upon visiting the project site after paying the advance amount, the homebuyer discovered glaring differences between the actual situation at the site and what was conveyed to them via email.

Builder contended that the homebuyer is referring to documents and emails that are not part of the official record. Additionally, it was argued on behalf of the builder that the email discussions cited by the homebuyers are not substantively included in the pleadings. Furthermore, it was asserted that the emails lack basis and are disconnected from each other. The builder also contended has no intention of engaging in unnecessary litigation and is willing to refund the amount after deducting 10% as a booking amount for the flat.

RERA Verdict

HPRERA held that the homebuyer was misled regarding the area of flat no. 402, which was significantly smaller than what was promised. Furthermore, there was no flat available under the designation 2BHK Duplex Skyvilla as offered to the homebuyer. Even when the flat's area was substantially reduced to 482.9 sq. ft. from the initially offered 1510 sq. ft., the discrepancies persisted. All of these actions of builder will fall under Section 12, and the builder is guilty of violating this section 12 of the RERA 2016.

HPRERA holds that the homebuyer is entitled to a full refund of their investment along with interest. Furthermore, the authority directed the builder that this refund should be payable within fifteen days from the date the refund was requested, starting from November 20, 2023, until the date of payment.

Regarding the builder's contention that they have no intention of unnecessary litigation and are ready to refund the amount after deducting 10% of the flat's cost as a booking amount, HPRERA rejected the builder's contention and held that there is no provision in the RERA act that deals with such issues.

In Conclusion, HPRERA ordered in favor of the homebuyer, granting them a full refund of their investment along with interest and directed the builder to make the refund within fifteen days from the date of the request, starting from November 20, 2023.

Case : Preeti Mandal vs M/s Rajdeep 8v Company Infrastructure Private Limited

Citation : Complaint No. HPRERA2023033/C

Counsel for Complainant : None

Counsel for Respondent : Sh. Rishi Kaushal

Click here to read / Download order