Haryana RERA Orders Emaar To Refund Amount Paid By Homebuyer

Background Facts

The homebuyer (Complainant) booked a villa in the builder's project named Marbella, located in Sector-65, Gurugram. A Buyer's Agreement was executed between the homebuyer and the builder on March 24, 2011, under which the builder was obligated to hand over possession of the villa within 30 months from the commencement of development work.

The homebuyer paid Rs. 1,30,00,000/- out of the total sale consideration of Rs. 7,80,29,298/- as per the builder's demands. The homebuyer contended that no additional demands for payment or cancellation notices were received from the builder.

Therefore, on July 29, 2021, he requested a refund of the amount paid via email but received no response from the builder. Therefore, being aggrieved by the builder's conduct, the homebuyer filed a complaint before the authority seeking a refund of the amount paid (Rs. 1,30,00,000/-) along with interest.

Contentions of Builder

The builder contended that the homebuyer made the final payment toward the sale consideration of the unit on 22.11.2011. Since the complaint was filed on 07.09.2022, more than 10 years after the last payment, the builder argued that the complaint is barred by the limitation period. Therefore, it should be dismissed.

Observation and Direction by Authority

The Authority rejected the builder's limitation period contention by holding that, although the homebuyer filed the complaint 10 years after the last payment, the law of limitation does not strictly apply under RERA, 2016. The Authority noted that the builder failed to communicate with the homebuyer during this period and did not respond to requests for updates. Therefore, the builder cannot benefit from its own fault.

The Authority referred to Section 18(1) of the Real Estate Regulation and Development Act 2016, which states:

18. Return of amount and compensation.

(1) If the builder fails to complete or is unable to give possession of an apartment, plot, or building—

(a) in accordance with the terms of the agreement for sale or, as the case may be, duly completed by the date specified therein; or

(b) due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this Act or for any other reason, he shall be liable on demand to the homebuyers, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment, plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf including compensation in the manner as provided under this Act:

Provided that where an allottee does not intend to withdraw from the project, he shall be paid, by the builder, interest for every month of delay, till the handing over of the possession, at such rate as may be prescribed.

The Authority observed that the builder did not follow the correct procedure for cancelling the homebuyer's villa and also failed to provide evidence of the cancellation. Therefore, the Authority held that the complainant is entitled to a full refund of the amount paid, plus interest at 11% per annum.

Case – Sh. Muthunayagom Gaudama Vasan Versus M/s Emaar Mgf Land Ltd.

Citation - Complaint No. 6129 of 2022