Builder Failed To Obtain Environmental Clearance Even After One Year From Holding Draw Of Lots, Haryana RERA Orders Refund

Background Facts

On 14.11.20, the homebuyer (Complainant) paid Rs. 1,16,671/- to book a flat in the builder's (Respondent) project named The Venetian, an Affordable Group Housing Colony situated in Sector 70, Gurugram. The total sale consideration of the flat was Rs. 22,84,000/-, of which the homebuyer paid Rs. 8,83,785/- to the builder.

When the homebuyer observed that construction of the project had not started, he wrote a letter dated 26.03.2022 to the builder, communicating his decision to withdraw from the project and requesting a refund of the amount paid.

When the homebuyer did not receive any assurance from the builder and other state authorities, he filed a complaint before the Authority seeking a refund of the principal amount of Rs. 8,83,785/- with interest.

Observation and Direction by Authority

The authority referred to clause 1(iv) of the Affordable Housing Policy, 2013, which stipulates that all projects must be completed within four years from the date of building plan approval or environmental clearance, whichever is later.

The authority observed that since the builder has not obtained environmental clearance from the competent authority to date, as per clause 5(iii)(b) of the Affordable Housing Policy, 2013, the builder is obligated to refund the amount deposited by the homebuyer with 12% interest if the homebuyer wants to withdraw from the project.

Regarding the builder's contention that the homebuyer is a willful defaulter, the authority held that as per clause 5(iii)(b) of the Affordable Housing Policy, 2013, the builder can receive further installments only after obtaining environmental clearance. Since the builder has not obtained environmental clearance to date, they are not entitled to receive any further payments from the homebuyer.

Therefore, the authority directed the builder to refund the entire paid amount as per clause 5(iii)(b) of the Affordable Housing Policy, 2013, with 10.25% per annum interest.

Case – Veena Chawla Versus M/S Ocean Seven Buildtech Private Limited A/W Ayushi Gupta Versus M/S Ocean Seven Buildtech Private Limited

Citation - Cr/2957/2023 A/W Cr/2959/2023