Builder Failed To Hand Over Possession Even After Delay Of 11 Years, Haryana RERA Orders Refund To Homebuyer With Interest

Background Facts

The builder (Builder) launched its project TDI Tuscan Floors in Sonipat in the year 2011. The original allottee booked a 4 BHK flat in the said project in 2011, at a cost of Rs. 32,50,000/. Subsequently, the homebuyer (Homebuyer), through the original allottee, was allotted the same 4 BHK flat.

A builder-buyer agreement was executed between the parties on 25.03.2011. According to clause 30 of this agreement, the builder committed to delivering possession of the booked unit within a period of 30 months from the date of the agreement, (i.e. by 25.09.2013). Despite the homebuyer paying Rs. 17,16,587/- out of the total cost, the builder failed to hand over possession of the flat even after a delay of 11 years.

Additionally, the builder has not obtained the occupation certificate and completion certificate for the project to date. No offer of possession has been made by the builder despite the prolonged delay of 11 years.

Given the builder's failure to construct and offer possession of the booked unit from 2013 to the present date, the homebuyer has lost trust in the builder's project and seeks to withdraw from it. Consequently, the homebuyer has filed a complaint before the Authority, seeking a refund of the amount paid to the builder along with interest.

Observation and Direction by Authority

The Authority observed that, as of this date, the builder has not obtained the occupation certificate for the flat allotted to the Homebuyer. Consequently, the builder is not in a position to offer lawful possession of the flat. This failure has caused an extraordinary delay in completing and delivering the flat to the Homebuyer, amounting to a breach of the terms of the builder-buyer agreement.

Further, the Authority observed that the delivery of possession of the flat along with the occupation certificate does not seem possible in the foreseeable future, as even during the hearing proceedings, the builder failed to commit to any date by which it would be in a position to make a valid offer of possession. Thus, the builder's failure to deliver possession of the flat, even after a significant delay of approximately 14 years from the date of booking in 2010, has frustrated the very purpose of booking the flat.

The Authority referred to the Supreme Court decision in M/s Newtech Promoters and Developers Pvt. Ltd vs. State of Uttar Pradesh & Ors, wherein it was held that if the Promoter fails to give possession of the apartment, plot, or building within the time stipulated under the terms of the agreement, then the Allottee's right under the Act to seek a refund or claim interest for delay is unconditional and absolute, regardless of unforeseen events or stay orders of the Court/Tribunal.

Therefore, the Authority directed the builder to refund Rs. 17,16,587/- paid by the homebuyer with 10.85% interest within 90 days.

Case - Jogender Singh Malik Versus TDI Infrastructure Limited

Citation - COMPLAINT NO. 2934 OF 2022