Rajasthan RERA Orders Refund To Four Homebuyers Of Sahara City Homes

Background Facts

Homebuyers (Complainants) booked flat numbers B8/904, B5/502, C4/701, and C8/701 in the Sahara City Homes project situated in Jaipur, and paid consideration of Rs. 23,24,152, 22,75,976, 22,48,210, and 21,65,043, respectively, to purchase their respective flats.

However, despite paying substantial consideration to the builder, the homebuyers did not receive possession of their booked flats within the promised timeframe. Therefore, the homebuyers filed a complaint before the authority seeking a refund of their amounts with interest.

Contentions of Sahara City Homes/ Respondent

Sahara contended that they started development and construction work on the site on time, but in 2010, a dispute arose between two companies of the Sahara Group and the Securities and Exchange Board of India (SEBI).

Furthermore, on November 21, 2013, the Supreme Court prohibited the Sahara Group of companies from parting with their movable and immovable properties, placing all movable and immovable assets under the control of SEBI.

Therefore, they are unable to make any decisions regarding the construction, development, and possession of the flats.

Observation and Direction by Authority

The authority observed that, given that the Real Estate (Regulation and Development) Act, 2016 was enacted while the project was still under construction, it has complete jurisdiction over the project. Therefore, the authority directed the builder to register the project under Section 3 of RERA, 2016.

Authority referred to the Supreme Court decision in M/s Newtech Promoters and Developers Pvt. Ltd vs. State of Uttar Pradesh & Ors [LL 2021 SC 641], where it was held that if the builder fails to handover the possession of the apartment, plot, or building within the time stipulated under the terms of the agreement, then the homebuyer's right under the RERA, 2016 to seek a refund or claim interest for delay is unconditional and absolute.

Consequently, the authority ordered the builder to refund the amounts paid by the homebuyers to purchase their flats, with an interest rate of 8.85% per annum, within 45 days.

Case – Nerraj Choudhary & others Versus Sahara Prime City Limited A/W 3 others

Citation - Complaint No. RAJ-RERA-C-N-2022-5125 A/W 3 others

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