WB REAT Upholds Authority's Decision Directing Builder To Refund ₹11 Lakh To Homebuyer, Initiates Proceedings For Selling Unregistered Project

While upholding the West Bengal Real Estate Regulatory Authority (Authority) order directing the builder to refund the homebuyer's paid amount of Rs. 11,00,000/- with interest, West Bengal Real Estate Appellate Tribunal (Tribunal) bench, comprising Justice Rabindranath Samanta (Chairperson), Gour Sunder Banerjee (Judicial Member), and Dr. Subrat Mukherjee (Administration Member), initiated proceedings against the builder for violating Section 3 of the Real Estate (Regulation and Development) Act, 2016.

Section 3 stipulates that that no builder can advertise, market, book, sell or offer for sale any real estate project without registering it with Authority.

Background Facts

On 11.08.2017, the homebuyers (Respondents) entered into a sale agreement with the builder (Appellant) to purchase a flat. The total sale consideration of the flat was Rs. 15,54,000/-, of which the homebuyers paid Rs. 11,00,000/- to the builder.

As per the agreement the builder was duty-bound to execute and register the sale deed by 30.09.2018. However, he failed to fulfill his obligations. Additionally builder changed the sanctioned plan of project from G+3 to G+4 without the homebuyers' permission. Furthermore builder also failed to obtain an occupancy certificate from the appropriate authority.

Therefore, the homebuyers filed a complaint before the authority seeking a refund of the amount paid. Through its order dated 12.06.2023 the authority directed the builder to refund Rs. 11,00,000/- to the homebuyers with interest within 45 days. Consequently being aggrieved by the authority order the builder filed an appeal before the Tribunal.

Observation and Direction by Tribunal

The Tribunal observed that the builder changing the sanctioned plan from G+3 to G+4 is a gross violation of Section 14 of the Real Estate (Regulation and Development) Act, 2016, which prohibits the builder from making any additions or alterations to the sanctioned plan.

The Tribunal also noted that the builder's failure to hand over possession of the flat to the homebuyers on time and to obtain the occupancy certificate for the project on time triggers the homebuyers' rights to seek relief under Section 18 of the Real Estate (Regulation and Development) Act, 2016.

Therefore, the Tribunal upheld the authority's decision directing the builder to refund the amount paid by the homebuyers with interest. Additionally, the Tribunal initiated proceedings against the builder for violating Section 3 of the Real Estate (Regulation and Development) Act, 2016 by selling the non-registered project.

Case Title – M/S Maa Batai Construction Versus Smt. Bharti Das & anr

Citation – WBREAT/APPEAL NO. — 01/2024

Date of Order – 30.04.2024

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