WBREAT Upholds Order Directing Builder To Pay Over ₹56 Lakh Over Failure To Provide Possession Of Four Plots By November 2016
West Bengal Real Estate Appellate Tribunal (Tribunal) bench comprising Justice Rabindranath Samanta (Chairperson), Gour Sunder Banerjee (Judicial Member) and Dr. Subrat Mukherjee (Administration Member) has provided relief to the complainant who purchased four plots by paying advance money in the builder's mini township project and was expecting possession by November 2016.The Tribunal upheld...
West Bengal Real Estate Appellate Tribunal (Tribunal) bench comprising Justice Rabindranath Samanta (Chairperson), Gour Sunder Banerjee (Judicial Member) and Dr. Subrat Mukherjee (Administration Member) has provided relief to the complainant who purchased four plots by paying advance money in the builder's mini township project and was expecting possession by November 2016.
The Tribunal upheld the Authority's order directing the builder to refund the principal amount of Rs. 44,08,600/- paid by the complainant to purchase the plots, along with Rs. 12,04,849/- as interest.
Background Facts
Getting attracted by the builder's (Appellant) advertisement complainant (Respondent) booked Plot in builder's project located at Shyamnagar within district North-24-Parganas beside the Kalyani Expressway for Rs. 10,61,600. An agreement was signed on 19th January 2014 with the balance of Rs. 7,43,120 to be paid in 36 monthly instalments.
The complainant also booked Plots No. 221, 232, and 233, paying advances and agreeing to pay the balance in monthly instalments.
Despite paying the full amounts for all four plots, the builder failed to execute and register the Sale Deeds. After repeated requests, the builder only sent drafts of the deeds. However, before finalizing the terms, the builder unilaterally cancelled all agreements and forfeited the amounts paid.
Being aggrieved, the complainant filed complaints before the authority. Authority through its order dated 21.06.23 directed builder to refund the amount paid by complainant with interest. Consequently, Builder filed appeal before the tribunal.
Observation and Direction by Tribunal
Tribunal observed that the builder miserably failed to complete the project in accordance with the law and was unable to deliver the plots to the complainant as per the Agreements for Sale. Therefore, the complainant is entitled to get back the amount paid to the builder with statutory interest in terms of Section 18 of the RERA, 2016.
Tribunal noted that the complainant filed these complaints under the West Bengal Housing Industry Regulation Act, 2017 which was held ultra vires by the Supreme Court on 4th May 2021. Consequently, cases registered under that act were transferred to WB RERA constituted under the Real Estate (Regulation & Development) Act, 2016. Therefore, the Tribunal upheld the authority's decision to allow the complainant's complaints.
Therefore, the Tribunal dismissed the builder's appeal with costs and upheld the authority's order dated 21.06.2023 directing builder to refund the principal amount of Rs. 44,08,600/- paid by the complainant to purchase the plots along with Rs. 12,04,849/- as interest.
Case Title – M/s Janapriyo Real Estate Pvt. Ltd. Versus Arindam Mitra
Citation – WBREAT/APPEAL NO. — 06/2023
Date of Order – 10.05.2024