Delay Of 18 Years In Handing Over Possession Of Plot, Haryana RERA Directs Ramprastha Promoters To Pay Interest

Background Facts

The complainant booked a 300 sq. ft. plot in the Builder's (Respondent) project named Ramprastha City, located at Sectors 37C and 37D Gurugram. The total sale consideration of the plot was Rs. 27,60,000/-. On 04.09.2006, the complainant paid all of the total consideration to the builder through a cheque.

At the time of booking, the builder promised to deliver possession of the plot within 30 months from the date of booking of the plot (i.e., 04.09.2006) with an extended period of 180 days (i.e., by 03.03.2009).

Further, the complainant requested builder to execute the builder-buyer agreement, however, it was never executed by the builder. Additionally, the complainant contended that, despite taking 100% consideration, the builder failed to deliver possession of the plot that was allotted to him.

Therefore, aggrieved by these reasons, the complainant filed a complaint before the authority seeking possession of the plot, interest for delayed possession, and direction to execute the builder-buyer agreement.

Observation and Direction by Authority

The authority noted that they have received many cases where builders took full or partial payment from buyers and only issued receipts for plot allotments in existing or upcoming projects in Gurugram. These builders did not provide any allotment letters or execute any builder-buyer agreements.

As a result, the buyers, who hold these receipts or allotments, face significant harassment. They struggle to take civil or criminal actions against the builders because they lack proper documentation.

Further, in order to conclude whether Receipt issued by Builder will fall under the definition of agreement, the authority referred Section 2(e) and Section 10 of Indian Contract Act, 1872, which is read as follows:

2(e). Agreement

Every promise and every set of promises, forming the consideration for each other, is an agreement

10. What agreements are contracts

All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void.

The authority observed that despite receiving a significant amount of money for a booked plot in 2006, the builder has not provided the complainant with any project details. The builder also failed to allot a specific plot number to the complainant. Additionally, the builder did not enter into a written agreement for the sale of the plot with the complainant.

Further, Author referred Nishant Bansal VS M/s Parsvnath Developers Limited, where Authority held that if the respondent cannot provide the complainant with the booked plot due to unavailability, they must find and buy a plot of the same size from the open market at their own expense.

Therefore, the authority directed the builder to allot a specific plot number to the complainant within 90 days from the date of the order. Additionally, Authority directed builder to issue allotment letter and execute the buyer's agreement for the allotted plot.

Further, Authority observed that there has been the delay of more than 18 Years in providing possession of the plot and directed builder to pay interest to the complainant at the rate of 11.10% P.a. for every month of delay from the due date of possession (04.09.2009 till actual handing over of possession.

Case – Pranav Goel Versus M/s Ramprastha promoters & Developers Pvt. Ltd

Citation – Complaint no 2438 of 2023

Order Date – 25.09.2024