Delhi REAT Holds Homebuyer Who Booked Flat Under Buy-Back Scheme As Allottee, Remands Matter To Delhi RERA

Real Estate Appellate Tribunal, NCT of Delhi (Tribunal) comprising of Justice Chander Shekhar (Chairperson) and Lorren Bamniyal (Judicial Member) held in favour of the homebuyer who had booked a flat under the Buy Back scheme. The Tribunal concluded that the homebuyer falls within the definition of 'allottee' and remanded the matter to the NCT Delhi Real Estate Regulatory Authority (Authority), which had dismissed the homebuyer's complaint holding him as an investor. Background Facts Homebuyer (Appellant) booked a three-bedroom flat measuring 1900 sq. ft in the builder's (Respondent) project named Antriksh Urban Greek situated in L Zone, Dwarka, Delhi under buy back scheme. As per the scheme, the builder was obligated to buy back the flat from the homebuyer by giving 25% return per annum on the total amount paid either at the end of 24 months or at the issuance of Land Transfer Certificate (LTC). The homebuyer paid Rs.19,00,000 in three installments but the project did not begin due to government delays in issuing LTC. To address this both parties signed a Memorandum of Understanding (MoU) on 24th September, 2017. The builder admitted its inability to fulfill the buy-back scheme and gave investors the option to either wait for government clearance or opt for a refund. Under the MoU, the builder agreed to refund Rs.28,50,000, including Rs.19,00,000 as the principal amount and Rs.9,50,000 as interest at 25% per annum. The homebuyer received Rs.15,00,000 but did not receive the remaining amount. Therefore, the homebuyer filed a complaint before the Authority seeking a refund of the remaining amount. Through its order dated 17th July 2023, the Authority held that the homebuyer is an investor and not an allottee under Section 2(d) of the RERA, 2016. Therefore, being aggrieved the homebuyer filed appeal before the tribunal. Observation and Direction by Tribunal The Tribunal noted that the builder had designed a well-planned scheme to raise immediate funds by offering attractive returns to buyers. While the investment may have been speculative, this was part of the scheme itself and did not affect the homebuyer's right to be considered an "allottee" under the law. Tribunal referred the agreement and held that it clearly gave the homebuyer the right to continue with the unit. If the homebuyer decided not to continue with the unit then only the buy-back clause will be applied and in such case the builder would repurchase it with appreciation. Further, the tribunal held that the promise of a 25% return per annum after 24 months or upon the issuance of the Land Transfer Certificate was not a valid reason to exclude the homebuyer from the definition of "allottee" under Section 2(d) of the RERA Act, 2016. Based on these findings the Tribunal allowed the appeal and ruled that the homebuyer was an allottee entitled to relief under the RERA, 2016. Additionally, Tribunal remanded the case to authority and directed to examine and decide the complaint on its merits within three months. Case – Vijay Goel Versus M/s Antriksh Infratech Private Limited Citation – APPEAL NO.128/REAT/2023 Counsel for the Homebuyer - Adv. Siddharth Karnawat Counsel for the Builder - Adv. Kajal Diwan Click Here To Read/Download THe Order

Delhi REAT Holds Homebuyer Who Booked Flat Under Buy-Back Scheme As Allottee, Remands Matter To Delhi RERA

Aryan Raj

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