Builder Told To Refund ₹37 Lakh For Delay In Possession Of Flat, ET RealEstate

August 27, 2023

JAIPUR: The Real Estate Regulatory Authority (RERA) has ordered a builder in Jaipur to refund the complete amount, including interest, to a flat buyer due to a delay in possession.

After a hearing, RERA member Shailendra Agrawal issued the order, instructing the builder to return the money within 45 days.

According to advocate Ram Prakash Kumawat, representing complainant Tanuja Singh, she booked a flat in a private society in Beelwa in March 2016. She paid an initial booking amount of Rs 1.5 lakh for a flat priced at Rs 38.49 lakh, with the rest to be paid in installments until December 2017.

Nine days after the booking, the builder obtained a loan of Rs 30.75 lakh from a bank using the complainant’s documents and deposited the amount into their account. As per the agreement, the builder was supposed to hand over possession of the flat by June 2018, he said.

However, the builder failed to deliver the flat in 2018 and took an additional Rs 5 lakh from the flat buyer, promising prompt possession. Despite the Covid pandemic, the flat remained unavailable to the buyer until the end of 2021. After personally inspecting the site and finding the flat incomplete, Singh filed a complaint with RERA.

Following a thorough review, the builder offered to allot a flat in another project which the buyer declined and demanded refund of her deposited amount. The RERA authority ordered the builder to reimburse the entire sum of Rs 37.25 lakh with an interest rate of 9.75% within 45 days, ensuring justice for the buyer.

A RERA official said, “This decision highlights the importance of adhering to commitments and delivering projects on time.”

A lawyer said that if the promoter fails to give possession within the time stipulated under the agreement, the promoter is under obligation to refund the amount with interest. If the allottee doesn’t wish to withdraw from the project, he shall be entitled to interest for the period of delay till handing over the possession.

  • Published On Jul 28, 2023 at 11:00 AM IST

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