MahaRERA - Homebuyers Accepting Partial Refund From Builder Without Interest Can't Later Seek Refund With Interest

Update: 2024-07-24 09:45 GMT
Click the Play button to listen to article
story

While rejecting the homebuyers' request for a refund with interest, who had accepted a partial refund of 15 lakhs from the builder without interest, Maharashtra Real Estate Regulatory Authority (Authority) bench, comprising Mahesh Pathak (Member – I), held that homebuyers accepting a partial refund amount from the builder without interest cannot later seek a refund with interest...

Your free access to Live Law has expired
Please Subscribe for unlimited access to Live Law Archives, Weekly/Monthly Digest, Exclusive Notifications, Comments, Ad Free Version, Petition Copies, Judgement/Order Copies.

While rejecting the homebuyers' request for a refund with interest, who had accepted a partial refund of 15 lakhs from the builder without interest, Maharashtra Real Estate Regulatory Authority (Authority) bench, comprising Mahesh Pathak (Member – I), held that homebuyers accepting a partial refund amount from the builder without interest cannot later seek a refund with interest under Section 18 of RERA, 2016.

Background Facts

The homebuyers (Complainants) booked flats in the builder's project named Deron Rise and Prosper, for which allotment letters were issued on 12-03-2020. Each homebuyer paid Rs. 30,00,000/- to the builder for purchasing the flat. However, no agreement for sale was executed between the parties, and there was no substantial progress in the construction of the project.

On 13-09-2021, due to the lack of progress, the homebuyers decided to withdraw from the project and canceled their bookings. The builder promised to refund the amount paid by the homebuyers in six installments by January 2022.

The homebuyers received a total of Rs. 15,00,000/- in five installments. The builder then provided a cheque for the remaining Rs. 15,00,000/-, which was dishonored twice. Aggrieved by the builder's actions, the homebuyers filed a complaint seeking the balance refund amount along with interest.

Observation and Direction by Authority

The authority noted that the flat was booked through an allotment letter issued by the builder, which did not specify a possession date. Following delays, the homebuyers canceled their booking on 13-09-2021 and builder subsequently refunded Rs. 15,00,000/- to the homebuyers.

The authority concluded that since the homebuyers accepted the partial refund, they cannot now file a complaint seeking interest on the refund amount. By opting for a refund without interest, the homebuyers forfeited their right to seek additional claims, including interest under Section 18 of Real Estate (Regulation & Development) Act, 2016.

However, the authority directed the builder to refund the remaining Rs. 15,00,000/- to the homebuyers, despite the fact that a cheque for this amount had been dishonored twice previously.

Case – Sujit Tulshiram Ranmale Versus Deron Properties Pvt Ltd A/W Ankur Dilip Patni Versus Deron Properties Pvt Ltd

Citation - Complaint No. CC005000000228330 A/W Complaint No. CC005000000279914


Full View


Tags:    

Similar News