Delay Of Over 8 Years, Haryana RERA Directs KNS Infracon To Refund And Settle Homebuyer's Loan Account

Haryana Real Estate Regulatory Authority (Authority) bench, comprising Ashok Sangwan (Member), has directed M/s KNS Infracon Private Limited to refund ₹93 Lakhs with interest to homebuyer who purchased a flat in their Capital Gateway Project. Additionally, Authority directed builder to close the homebuyer's loan account with the bank using the refundable amount. Background Facts Through a flat buyer agreement dated 21.08.2017, homebuyer (Complainant) was allotted a flat in the builder's (Respondent) project named "Capital Gateway" located at sector 111, Gurugram. The total sale price was Rs. 1,46,55,178/-, of which the homebuyer paid Rs. 1,29,50,000/- in installments as demanded by the builder. Homebuyer contended that builder demanded additional payments without reaching any construction milestones and pressured him to take a home loan from the bank. Under this pressure, the homebuyer took a loan of Rs. 1,03,50,000/- which was paid directly to the builder. Although the homebuyer was reluctant to take such a large loan but builder assured him that it would pay the EMI until possession was handed over. However, the builder failed to make the regular EMI payments and stopped paying for the last 4-5 months. As a result, the homebuyer faced legal proceedings and stress with the bank due to non-payment of the EMI. Further, according to clause 2 of the agreement, the possession of the flat was to be handed over within 24 months from the agreement's execution date. However, construction has progressed very slowly and as per homebuyer it seems unlikely to be completed within the two-year timeframe or in the near future. Therefore, aggrieved by the builder's actions, the homebuyer decided to withdraw from the project and demanded a refund of his paid amount. When the builder ignored this demand, the homebuyer filed a complaint before the authority seeking a refund with interest. Observation and Direction by Authority The authority noted that, as per Clause 2 of the agreement, the builder was supposed to hand over possession of the flat within 48 months from the date of approval of the building plans. Since the building plans were approved on 07.06.2012, the due date for possession of the flat was 07.06.2016. Authority found that the builder has violated Section 11(4)(a) of RERA, 2016 by failing to hand over possession by the agreed-upon date. The authority emphasized that the homebuyer cannot be expected to wait indefinitely for possession of the flat after paying a substantial amount towards the sale price. It concluded that the builder's failure to comply with Section 11(4)(a) triggers the application of Section 18(1) in this case. As a result, authority held that homebuyer is entitled to a full refund of the amount paid (i.e. Rs. 93,00,000 /- along with interest at the rate of 11.10% per annum. Additionally, the authority directed the builder to settle the homebuyer's loan account with the bank using the refundable amount and any remaining balance should be refunded to the homebuyer. Case – Bhaskar Das Versus M/s KNS Infracon Private Limited Citation – Complaint No. 4840 of 2022 Date of Order – 23.10.2024Click Here To Read/Download The Order

Delay Of Over 8 Years, Haryana RERA Directs KNS Infracon To Refund And Settle Homebuyer's Loan Account

Aryan Raj

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