MahaRERA Directs Ruparel Infra & Reality To Refund Homebuyer's Money After Deducting 2% Of Total Consideration

Background Facts

Homebuyers (Complainants) purchased flats in the builder's (Respondent) project named Ruparel Optima Ph I, located in Borivali, Mumbai. The first homebuyer paid ₹2,94,975 out of the total consideration of ₹57,00,000, while the second homebuyer paid ₹2,71,755 out of the total consideration of ₹54,90,000. The builder was supposed to handover the possession of the flats on 31-07-2017 for the first homebuyer and on 20-01-2020 for the second homebuyer.

The first homebuyer argued that the builder was supposed to construct a 22-floor building. However, by 2019, the construction was still incomplete. Additionally, the first homebuyer discovered that the builder had updated the project details on the authority's website, indicating that the building would now have 42 floors instead of 22. The builder then terminated the first homebuyer's booking and forfeited the entire amount paid.

The second homebuyer contended that due to COVID-19, they faced significant financial hardship and decided to withdraw from the project. therefore, they requested refund from the builder, but the builder canceled their booking and forfeited the amount paid.

Both homebuyers, aggrieved by the forfeiture, filed separate complaints before the authority seeking a refund of their amounts with interest. The authority decided to club the complaints for a common judgment.

Observation and Direction by Authority

The Authority noted that builder has not executed agreement for sale in the favour of both homebuyers and since the amount paid by them i.e. Rs.2,94,975/- and Rs. 2,71,755/- respectively is less than 10% of the total consideration. Therefore, prima facie there is no violation of Section 18 RERA, 2016.

The Authority held that homebuyers have not cited any fact to prove the contravention of Section 12 RERA, 2016 which stipulates obligations of builder regarding veracity of the advertisement or prospectus by builder. Therefore, Authority rejected the homebuyers claim of seeking refund with interest.

The Authority referred to its Order No. 35/2022 dated 12.08.2022, which allowed builders to forfeit 2% of the amount in case of cancellation by the homebuyer, and held that the builder's forfeiture of the entire money paid by the both homebuyers i.e Rs.2,94,975/- and Rs. 2,71,755/-respectively, is inconsistent with this order.

Therefore, the authority directed builder to refund the money paid by Homebuyer without any interest after deducting 2% of total consideration of the flat within 45 days.

Case – Rupesh Jaikaran Deshbhratar Versus Ruparel Infra & Reality Pvt Ltd. A/W 1 other

Citation – Complaint No. CC006000000282180 A/W 1 other

Date of Order – 30.09.2024