Haryana RERA Holds Emaar India Right In Charging Rs. 34.75 Lakh For External And Infrastructure Development Charges

Background Facts

The complainant booked a Shop Cum Office plot in the builder's (Respondent) project named Emaar Business District located in Sector 114, Gurugram by paying a booking amount of Rs. 10 lakhs. The project was a type of plotted commercial colony.

The agreement for sale was executed between the builder and the complainant on December 23, 2021. The total sale consideration for the unit was Rs. 3,24,00,292 out of which the complainant paid Rs. 1,49,14,938 to the builder against their demands.

In January 2022, the complainant discovered through the project registration certificate that the builder was not allowed to charge EDC/ IDC separately from the buyers. However, the builder responded to the allegation by quoting another provision of the registration certificate.

The complainant contended that the builder illegally charged them Rs. 34,75,588 for EDC/IDC by violating the registration terms. Therefore, being aggrieved the complainant filed a complaint before the authority seeking a refund of Rs. 34,75,588 with interest and a direction to the builder not to charge anything that is not part of the agreement for sale.

The Authority through its order dated January 12, 2023 held that the builder was right in charging Rs. 34,75,588 from the complainant as EDC/IDC charges. Being aggrieved by the order the complainant filed an appeal before the Haryana Real Estate Appellate Tribunal (Tribunal). The Tribunal through its order dated July 3, 2024 remitted the complaint back to the Authority for fresh consideration.

Observation and Direction by Authority

The Authority referred to Annexure III of the payment plan which outlined the total price. The annexure indicated that the Basic Sale Price of the plot was Rs. 2,85,64,965 and the EDC/IDC charges were Rs. 34,75,588.

The Authority observed that the agreements between the builder and the complainant are binding except for the provisions that have been overridden by the RERA, 2016 itself.

The Authority held that the charges to be paid under different categories must follow the terms and conditions of the agreement to sale. These charges should also align with the approved plans and permissions from the relevant authorities. Furthermore the charges should not violate any laws or regulations and must not be unreasonable.

Based on these observations authority dismissed the complaint.

Case – Mrs. Milli Jain & Anr Versus M/s Emaar India Limited.

Citation – Complainant no 1656 of 2022

Date – 10 December

Click Here To Read/Download The Order