Delay Of 3.5 Years In Delivering Possession Of Plot, Himachal RERA Directs Builder To Pay Rs. 2.92 Crore As Interest To Complainant

Himachal Real Estate Regulatory Authority (Authority) bench comprising Justice Srikant Baldi (Chairperson) directed the builder to pay Rs. 2.92 crore to the complainant who received the offer of possession of plot after a delay of 3.5 years. Background Facts The complainants booked a plot in Solan, Himachal Pradesh measuring 1094.70 square meters and paid Rs. 20,00,000/- to the builder (Respondent) as the booking amount. The total consideration for the plot was Rs. 2,74,61,753/- out of which the complainants paid Rs. 2,56,51,110/- to the builder. A sale agreement was executed on 04.07.2013 according to which the builder was supposed to deliver possession by 03.07.2015. However, even after paying more than 90% of the consideration the builder offered possession after a delay of 3.5 years. On June 14, 2022, the builder informed the complainants of their intention to terminate the agreement and refund the amount they had paid. Later on December 15, 2022, the builder offered a refund with 6% annual interest, totalling Rs. 3,98,32,110. The complainants argued that the interest rate they should receive should be the same as the one the builder charged them for delays, which was 18% per annum. As a result, they issued a legal notice on February 13, 2023 demanding Rs. 15,71,06,905 but did not receive any response from the builder. On February 27, 2024, the builder cancelled the allotment and provided only Rs. 2,56,51,110. Consequently, the complainants filed a complaint with the authority, seeking Rs. 14,63,38,753.06 from the builder, along with Rs. 1,00,00,000 for mental agony and harassment. Observation and Direction by Authority The Authority observed that the builder failed to deliver possession of the plot within the stipulated time and did not execute the registered conveyance deed as required under Section 11(4)(f) of RERA, 2016. By doing so the builder violated the various provisions of RERA, 2016. Authority noted that during the pendency of the matter builder refunded the amount which complainant had paid in order to purchase the plot. Therefore, authority referred Rule 15 of the Himachal Pradesh Real Estate (Regulation and Development) Rules, 2017 in order to determine the interest. Rule 15 stipulates that the interest rate payable by either the builder to the allottee or the allottee to the builder will be the State Bank of India's highest marginal cost of lending rate plus two percent. Authority held that the complainant is entitled to interest at the SBI highest marginal cost of lending rate plus 2%, which totals 11.10%. Therefore, builder is liable to make payment of Rs. 2,96,53,238/- as interest due on principal amount to complainant. Case Title – Shri Manish Kumar Newar HUF & another Versus Delanco Realtors Private Limited & others Citation – Complaint No. HPRERA2024015/C Date of order – 19/10/2024 Counsel for Complainant - Vishnu Anand Counsel for Respondent - Gautam SoodClick Here To Read/Download The Order

Delay Of 3.5 Years In Delivering Possession Of Plot, Himachal RERA Directs Builder To Pay Rs. 2.92 Crore As Interest To Complainant

Aryan Raj

This is a premium content
Available exclusively to
Our subscribers

INR 1099+GST

Tags

Aryan Raj

Delay Of 3.5 Years In Delivering Possession Of Plot, Himachal RERA Directs Builder To Pay Rs. 2.92 Crore As Interest To Complainant

Aryan Raj

This is a premium content Available exclusively to Our subscribers

INR 1099+GST

Tags

Aryan Raj

This is a premium content
Available exclusively to
Our subscribers