Haryana RERA Orders Czar Buildwell To Refund Amount Paid By Homebuyer Of Mahira Homes-104

Although the due date for possession was set for 2026, the Authority revoked the project's registration on March 11, 2024, due to numerous violations of the Real Estate (Regulation and Development) Act, 2016. Since it was clear that the builder could not complete the project, the Authority granted a refund to a homebuyer of the Mahira Homes 104 Project.

Background Facts

The homebuyer (Complainant) was allotted a flat in the builder's (Respondent) affordable group housing project named “Mahira Homes-104,” located in Sector-104, through an allotment letter dated December 3, 2021.

The total cost of the flat was ₹26,50,886, of which the homebuyer paid ₹6,62,607 to the builder. The builder and the homebuyer entered into a builder-buyer agreement on February 3, 2022, according to which the builder was supposed to hand over possession of the flat by April 27, 2026.

However, in June 2022, the homebuyer decided to cancel the booking and requested a refund. Despite this, the homebuyer did not receive the refund or a satisfactory response from the builder. Therefore, the homebuyer filed a complaint before the authority, seeking a refund with interest.

Observation and Direction by Authority

The Authority noted that on May 28, 2022, it started its own investigation against the builder under Section 35 of the RERA, 2016, based on a site visit report. Additionally, the Authority noted that on May 17, 2022, the Director of Town & Country Planning blacklisted the builder for submitting fake bank guarantees and forging bank official signatures. This decision was later withdrawn on July 21, 2022, after the developer met certain conditions.

The Authority further noted that on July 19, 2022, it froze all the builder's accounts due to non-compliance with the RERA, 2016. Then, on September 6, 2023, the Authority initiated proceedings to revoke the project's registration under Section 35 of the RERA, 2016. Finally, on March 11, 2024, the Authority revoked the project's registration certificate under Section 7(1) of the RERA, 2016. As a result, the builder cannot sell any unsold units in the project, and their accounts remain frozen.

The Authority observed that even though the due date for possession is 2026, Section 18 of RERA, 2016, applies because the builder is unable to hand over possession of the flat due to the discontinuation of their business. This discontinuation may be due to the suspension or revocation of registration, or any other reason. In such cases, the homebuyer is entitled to a full refund with interest.

Therefore, the Authority directed the builder to refund the ₹6,62,607 paid by the homebuyer, along with 11% per annum interest.

Case – Sanjay Versus M/s Czar Buildwell Pvt. Ltd

Citation – Complaint no : 3684 of 2023