Haryana RERA Directs Ocean Seven Buildtech To Refund Homebuyer's Payment After Deducting ₹25,000 Under Affordable Housing Policy

Haryana Real Estate Regulatory Authority (“Authority”) bench comprising of Phool Singh Saini (Member) clarified that when a homebuyer fails to comply with a payment demand in an Affordable Housing project, the builder may cancel the allotment only in accordance with clause 5(iii)(i) of the Affordable Group Housing Policy 2013. In such cases, the builder must refund the amount paid by the homebuyer after deducting Rs. 25,000. Background Facts Homebuyer (Complainant) was allotted a flat in the builder's (Respondent) project named Expressway Towers after winning the draw of lots in April 2017. The project falls under the Affordable Housing Policy 2013 of the Haryana Government. Agreed price of the flat was Rs.12.28 lakh, out of which the homebuyer paid Rs.7.31 lakh, amounting to about 60 percent of the total consideration. According to the homebuyer, the builder did not execute the buyer's agreement even after receiving most of the payment, which is a violation of Section 13 of the RERA Act. The project received environmental clearance on 30 November 2017, making the due date of possession 30 November 2021 under the Affordable Housing Policy. Homebuyer contended that construction remained stalled and despite this the builder issued a demand notice threatening cancellation. Homebuyer stopped further payments only because the project was not progressing and is willing to clear dues once a valid offer of possession is made. The project still remains incomplete with a delay of about 24 months from the promised date of possession. Homebuyer alleges that the builder has violated RERA norms and Affordable Housing Policy obligations and has approached the Authority seeking restoration of the unit, execution of the buyer's agreement and compensation for delay. Contentions of Builder Builder contended that the flat was cancelled on 03 September 2021 after issuing the demand letter on 16 March 2020 and publishing the list of defaulters in a regional newspaper on 19 June 2020. Builder also contended that the homebuyer failed to clear the dues despite repeated reminders. Builder argued that cancellation was the only option left under the policy. Observation and Direction by Authority Authority noted that the Affordable Group Housing Policy 2013 requires the builder to offer possession within four years either from the date of building plan approval or from the date of environmental clearance. Since the environmental clearance was granted on 30 November 2017, the Authority treated this as the operative date for calculating the possession timeline. Authority also observed that the builder was entitled to a six month extension granted through the Government notification dated 26 May 2020 issued in view of the Covid-19 pandemic. After applying this extension, the Authority held that the revised due date of possession stood extended to 30 May 2022. Authority examined the validity of the cancellation letter dated 03 September 2021. It noted that clause 5(iii)(i) of the Affordable Group Housing Policy 2013 allows cancellation only after a 15 day reminder for unpaid instalments, publication of the defaulter's name in a regional Hindi newspaper with over ten thousand circulation and another 15 day opportunity to pay after which the builder may cancel and deduct Rs. 25,000. Authority observed that the instalment due on 16 March 2020 remained unpaid. The builder published a notice on 19 June 2020 and later issued a non-payment notice dated 21 July 2021 which eventually led to the cancellation notice dated 03 September 2021. Authority noted that the builder published the list of defaulters in the Hindi daily Gurgaon Mail on 19 June 2020 and later issued the cancellation letter on 03 September 2021. It held that the cancellation was in line with the Affordable Housing Policy 2013. However, there was no material to show that the builder refunded the balance amount after deducting Rs. 25,000 as required. Authority therefore directed the builder to refund Rs. 7,31,251 to the homebuyer after deducting Rs. 25,000 in terms of clause 5(iii)(i) of the policy, along with interest at 10.85 percent per annum. Case – Sachin Kumar v. M/s Ocean Seven Buildtech Pvt. Ltd Citation- Complaint No. 155 of 2024Click Here To Read/Download Order

Haryana RERA Directs Ocean Seven Buildtech To Refund Homebuyer's Payment After Deducting ₹25,000 Under Affordable Housing Policy

Aryan Raj

Tags