Haryana RERA Upholds Builder's Termination Of Flat Booking After Homebuyer Failed To Make Timely Payments

Background Facts

The Homebuyers booked a flat in the Builder's project named M3M Sky Walk, located at Sector-74, Gurugram, by signing a booking application on 09.08.2020 and by paying a booking amount of Rs. 5,00,000/-.

Furthermore, after booking the flat, the Homebuyers requested the Builder to provide a copy of the RERA approval to obtain necessary permission from their departments as per the Central Civil Services (Conduct) Rules, 1964. However, despite numerous follow-ups, the Builder neglected to provide the RERA approval to the Homebuyers. As a result, the complainant failed to make the payment on time.

However, instead of providing the RERA approval to the Homebuyers, the Builder pressured them to sign the Builder Buyer Agreement (BBA). Furthermore, the Builder sent a termination letter to the complainant on 15.04.2022, stating that the Builder had cancelled the booking of the complainant. Aggrieved by this, the complainant filed a complaint before the Authority seeking the restoration of the booked flat.

Observation and Direction by Authority

The Authority noted that the Homebuyers were informed that the allocation of the flat depends on several factors, including the final unit selection based on availability, the completion of booking formalities, and the execution of necessary documents by the Homebuyers. Furthermore, the Homebuyers were informed that if these conditions are not met, the Builder has the unilateral right to cancel the allocation.

The Authority noted that the Builder, after terminating the allotment, had already refunded the entire amount paid by the Homebuyers toward the booking, i.e., Rs. 5,00,000/-, through cheques.

Furthermore, the Authority observed that the Homebuyers' claim that they could not make the due payment against the booking on time due to the Builder's failure to provide a copy of the RERA registration certificate cannot be considered reasonable, as the RERA registration certificate is a public document and can be easily accessed by anyone from the Authority's website.

Therefore, the Authority held that the Homebuyers are at fault, and the Builder rightly terminated the booking due to the Homebuyers' failure to complete the booking formalities and finalize the allotment.

Case – Dilbag Sharma & another Versus M3M India Private Limited

Citation - Complaint No. 2306 of 2023

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