Punjab RERA Holds ATS Estate Liable For Delayed Possession, Orders Refund With Interest To Homebuyer

Punjab Real Estate Regulatory Authority (Authority) Bench, Comprising of Binod Kumar Singh (Member) directed ATS Estates to refund Rs. 17.74 Lakhs along with interest to the homebuyers for the delayed possession. Background Facts Homebuyers (Complainants) booked a residential apartment in Tower-9 of the builder's (Respondent No 1) project named ATS Golf Meadows Lifestyle-2 located at Mohali, Punjab. The builder issued an allotment letter on 27.03.2017 confirming the booking upon receiving a payment of Rs.1,00,000. The builder also assured the homebuyers a monthly rental of ₹8,000 for 36 months and executed a Buyer Agreement on the same date. The total sale consideration for the apartment was Rs. 37,58,750. As per Clause 14 of the Buyer Agreement the builder was required to hand over possession of the flat within 42 months with a grace period of 6 months from the start of construction of the tower. Despite making several payments amounting to Rs.17,74,080, the homebuyers contended that the builder failed to construct Tower-9, halted construction in December 2017 and resumed work in April 2021. Due to the prolonged delay and lack of communication, the homebuyers decided to withdraw from the project and filed a complaint before the authority, seeking a refund of the amount paid along with interest as well as the assured monthly rental of ₹72,000 for the period from August 2019 to March 2020. Observation and Direction of Authority On the contention of builder that the completion date of the project was set for 1st September 2026, the Authority referred to the Supreme Court's decision in the case of Imperia Structures Ltd. v. Anil Patni and Anr. (Civil Appeal 3581-3590 of 2020), where it was observed that the date for delivery of possession to the homebuyer is the date mentioned in the agreement for sale and not the date until which the project registration is valid. Further, on the issue of Monthly rental income, The Authority held that the amount of Rs. 2,16,000 paid by Builders (Respondent No. 1 to 3) towards assured rental income as per the agreed terms should be deducted from the amount due to the homebuyer. The Authority also referred to Clause 14 of the Buyer Agreement, which stipulated that the builder was to hand over possession of the flat within 42 months with an additional 6-month grace period from the date of commencement of the actual construction of the tower. Furthermore, the Authority referred a letter dated 13th February 2017, issued by the builder to another homebuyer in the same tower where the complainant had booked the flat. In the letter, the builder had confirmed that construction of the tower had started in February 2017. Based on Clause 14 and the builder's letter, the Authority determined that the due date for possession was on or before 28th February 2021. Therefore, the Authority held the builder liable for the delay and directed the builder to refund the amount of Rs.17,74,080 along with 11.10% interest to the homebuyer. Additionally, the Authority directed that the refund should first be used to clear the homebuyer's loan and the remaining amount should be paid to the homebuyer. Case – Jyotsna Dhawan & anr Versus ATS Estate Pvt. Ltd & others Citation – GC No. 0248 of 2024 Date – 31st December, 2024 Click Here To Read/Download The Order

Punjab RERA Holds ATS Estate Liable For Delayed Possession, Orders Refund With Interest To Homebuyer

Aryan Raj

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Punjab RERA Holds ATS Estate Liable For Delayed Possession, Orders Refund With Interest To Homebuyer

Aryan Raj

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INR 1099+GST

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