Rajasthan RERA Orders Compensation To Homebuyer, Rejects Builder's Contention That Delay Caused Due To ED Investigation

Background Facts

The homebuyer booked a flat in the project named SKY 25, developed by the builder, for a total sale consideration of Rs. 15,76,251/-. An agreement for sale was executed between the complainant and the builder on 27.05.2013, stipulating that the flat would be handed over by the end of December 2014. However, despite the homebuyer paying Rs. 15,06,964/- out of the total consideration, the builder failed to offer possession within the stipulated time period.

Aggrieved by the delay, the homebuyer filed a complaint before the Rajasthan RERA. Through its order dated 30.11.2022, the Authority directed the builder to hand over possession of the allotted flat to the homebuyer and register the sale deed with the appropriate authorities. The Authority also granted liberty to the homebuyer to approach the Adjudicating Officer for compensation.

Consequently, the homebuyer filed a complaint before the adjudicating officer seeking compensation of Rs. 20 Lacs for the delay in possession along with the cost of litigation.

Contentions of Builder

The builder contended that the delay in completing the project was due to the investigation by the Enforcement Directorate and other related issues. However, the builder made every effort to expedite the project's completion. Additionally, registered letters were sent to the homebuyer on 10.10.2017 and 28.12.2017, urging them to take possession and register the sale deed. Despite this, the homebuyer neither approached nor tendered the remaining dues. Therefore, the delay is attributable to the homebuyer.

Authority Order

The Authority holds the builder accountable for violating Section 18 of the Real Estate Regulation and Development Act 2016 due to its failure to offer possession within the stipulated timeframe. Consequently, the Authority directed the builder to pay Rs. 2,70,000/- as compensation for the delayed period.

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

18. Return of amount and compensation.

(1) If the promoter 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 allottees, 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 promoter, interest for every month of delay, till the handing over of the possession, at such rate as may be prescribed.

Additionally, the Authority dismissed the builder's contention that the delay was caused by an investigation conducted by the Enforcement Directorate. The Authority noted that the investigation by the Enforcement Directorate occurred outside the period stipulated in the agreement for sale. Specifically, the investigation took place during the years 2015 and 2016, whereas the flat was supposed to be handed over to the homebuyer by the end of December 2014.

Case – Vasudev Takwani & another Versus M/s Riddhi Siddhi Infra Projects Pvt.

Citation - Complaint No.RAJ-RERA-C-2023-6065