Haryana RERA Holds AKME Projects Liable For Over 10 Years Of Delay In Manesar Project, Orders Refund To Homebuyer
Aryan Raj
28 Nov 2024 8:30 AM IST
Haryana Real Estate Regulatory Authority (Authority) bench comprising Ashok Sangwan (Member) has directed M/s AKME Projects Ltd to refund the homebuyer due to a delay of over 10 years in handing over possession.
The homebuyer was expected to receive possession of the flat by 18 May 2014. However, authority found that as of 2024 the builder has still not obtained the occupation certificate from the relevant authority.
Background facts
Homebuyer (Complainant) purchased a flat in the builder's (Respondent) group housing project named Akme Raaga situated at Manesar, Gurugram by paying Rs. 15,32,125/- to the builder. The total sale consideration of the flat was Rs. 56,55,000/-.
A Memorandum of Understanding (MOU) was executed between homebuyer and builder on 18.05.2011. As per the MOU the builder was supposed to hand over possession of the flat within 36 months from the date of entering into the MOU (i.e., by 18.05.2014).
Despite paying a total sum of Rs. 45,35,733/- to the builder the homebuyer did not receive possession of the flat. Additionally builder failed to provide a satisfactory response to the homebuyer.
Therefore, the homebuyer decided to withdraw from the project and approached the authority seeking a refund of the amount paid along with interest.
Observation and Direction by Authority
The Authority noted that the MOU dated 18.05.11 didn't mention the due date of possession. Therefore, to determine the possession date the authority referred to the case of Fortune Infrastructure vs. Trevor D'Lima (Civil Appeal No.3533-3534/2017) where Supreme Court held that three years is a reasonable time for the completion of the project. Based on this the Authority held that the due date for possession of the flat was 18.05.2014.
Authority noted that although the due date for possession of the flat was 18.05.2014 the builder has yet to receive the occupation certificate for the project. Therefore the homebuyer cannot be expected to wait indefinitely to take possession of the unit they have paid for.
Authority referred to the case of Ireo Grace Realtech Pvt. Ltd. vs. Abhishek Khanna & Ors. (Civil Appeal No. 5745 of 2019) where the Supreme Court held that the lack of an occupation certificate amounts to a deficiency in service. The court also stated that homebuyers cannot be made to wait indefinitely for possession of their apartments nor can they be forced to accept the apartments in an incomplete phase of the project.
Therefore, the Authority directed the builder to refund the amount paid by the homebuyer (i.e., Rs. 45,35,733/-) with 11.10% interest within 90 days.
Case – Preeti Yadav & anr Vs. M/s AKME Projects Limited
Citation – Complaint no: 4246 of 2023
Date of Order – 13.11.2024
