Rajasthan RERA Refuses Refund To Homebuyer In Completed Project, Orders Interest For Delay Instead
Rajasthan Real Estate Regulatory Authority (Authority) Bench, comprising Veenu Gupta (Chairperson), refused to grant refund to homebuyer in a completed real estate project, citing potential adverse effects on the project. However, the Authority directed the builder to pay interest to the homebuyer for the delay instead. Background Facts The homebuyer was allotted Flat No. 303...
Rajasthan Real Estate Regulatory Authority (Authority) Bench, comprising Veenu Gupta (Chairperson), refused to grant refund to homebuyer in a completed real estate project, citing potential adverse effects on the project. However, the Authority directed the builder to pay interest to the homebuyer for the delay instead.
Background Facts
The homebuyer was allotted Flat No. 303 in Tower A of the builder's real estate project named Ashoka Cosmos. The total price of the flat was Rs. 38,68,400.
As per the agreement to sub-lease, the builder was required to hand over possession of the flat within 42 months from the date of signing the agreement or the commencement of construction, whichever was later, along with a grace period of 180 days, i.e., by 01.10.2018.
Despite the homebuyer paying Rs. 40,76,609 (including taxes) out of the total price of Rs. 38,68,400, the builder failed to hand over possession of the flat on time. Aggrieved by the delay, the homebuyer filed a complaint before the Authority seeking a refund of the total amount with interest and litigation costs of Rs. 1 lakh.
Contentions of Builder
The builder contended that the flat booked by the homebuyer was completed in 2019. However, the completion certificate was obtained on 30.06.2021. Offers of possession were made in 2019, 2020, and 2022, which were accepted by the homebuyer. The builder requested the homebuyer to take possession of the flat.
Observation and Direction by Authority
The Authority observed that the completion certificate for the project was obtained from the architect on 30.06.2022, and after that, several offers of possession were made to the homebuyer.
The Authority further noted that providing a refund at this stage, when the project has been completed, would have an adverse impact on the overall progress of the real estate project. Therefore, the Authority directed the homebuyer to take possession of the flat as offered by the builder.
Additionally, the Authority observed that since the project is delayed, the homebuyer is entitled to receive interest from the builder from the possession date stipulated in the sub-lease agreement until the date on which the possession offer was made by the builder. Consequently, the Authority directed the builder to pay interest from 01.10.2018 to 18.05.2022 at a rate of 10.85%.
Case – Ashish Yadav Versus Cosmos Infra Engineering India Pvt. Ltd
Citation – Complaint No : RAJ/RERA/C-N-2023-6153