WBREAT Upholds Decision To Refund Complainant Who Booked Two Plots In Mini Township Project By Advance Payment In 2014

West Bengal Real Estate Appellate Tribunal (Tribunal) bench, comprising Justice Rabindranath Samanta (Chairperson), Gour Sunder Banerjee (Judicial Member), and Dr. Subrat Mukherjee (Administration Member), upheld the West Bengal Real Estate Regulatory Authority (Authority) order directing the builder to refund the Complainant's principal amount with interest.

The complainant had booked two plots in what was presented as the builder's mini township project by making an advance payment.

Background Facts

Getting attracted by the advertisement published by builder (Appellant) about their Mini Township situated at Shyamnagar within district North-24-Parganas beside the Kalyani Expressway complainant decided to purchase plot in builder's project. The total sale consideration of the plot was Rs. 5,30,000.

On 26th August 2014, the complainant made an advance payment of Rs. 1,89,916 for the plot with the remaining amount of Rs. 3,40,048 to be paid in 48 equal monthly instalments as per the agreement signed on 10th October 2014.

The complainant also booked another plot for Rs. 5,77,000 paying Rs. 1,73,000 as an advance on 3rd February 2014. The remaining balance of Rs. 4,03,900 was to be paid in 36 instalments.

Despite the complainant paying the full amount for both plots on time the builder failed to execute and register the Sale Deeds. The complainant repeatedly requested the builder to complete the formalities but there was no response.

However, during the finalization of the deeds the builder cancelled both agreements without any prior notice and forfeited the entire amount paid by the complainant. Therefore, being aggrieved complainant filed complaint before the authority.

Authority through its order dated 21.06.23 directed builder to refund the amount paid by complainant with interest. Consequently, Builder filed appeal before the tribunal.

Observation and Direction by Tribunal

Tribunal observed that the act of builder clearly indicate that they have cancelled the allotments of the plots whimsically, unilaterally and without any sufficient cause. Therefore, the complainant rightly approached authority to challenge the builder's action.

Tribunal noted that the complainant filed these complaints under the West Bengal Housing Industry Regulation Act, 2017 which was held ultra vires by the Supreme Court on 4th May 2021. Consequently, cases registered under that act were transferred to WB RERA constituted under the Real Estate (Regulation & Development) Act, 2016. Therefore, the Tribunal upheld the authority's decision to allow the complainant's complaints.

The Tribunal held that the builder miserably failed to complete the project in accordance with the law and was unable to deliver all the plots to the complainant as per the agreements for Sale. Therefore, the complainant is entitled to get back the amount she paid with statutory interest under Section 18 of RERA, 2016.

Consequently, the Tribunal dismissed the builder's appeal with costs and upheld the authority's order dated 21.06.2023.

Case Title – M/s Janapriyo Real Estate Pvt. Ltd. Versus Shyamali Mitra

Citation – WBREAT/APPEAL NO. — 08/2023

Date of Order – 10.05.2024

Click Here To Read/Download Order