Punjab RERA – Homebuyer Who Accepts Possession Can't Claim Refund From Builder

While dismissing the homebuyer's complaint, the Punjab Real Estate Regulatory Authority (Authority) bench, consisting of Balbir Singh (Adjudicating Officer), held that a homebuyer who has accepted possession of the flat cannot seek a refund on the grounds of delay by the builder in handing over possession. Background Facts In 2009, the homebuyer was allotted a flat in the builder's project named Gold Links-1, Sector 114, Mohali, at a total sales cost of Rs. 35,57,363/-. The homebuyer paid Rs. 29,68,475/- with a loan from HDFC Bank. Despite the homebuyer's request, the builder did not execute an agreement for the transaction. Initially, the builder promised to complete the project's construction within two years of the allotment but failed to do so. After waiting for a long period, the homebuyer requested the cancellation of the allotment and a refund in 2018. However, the builder continued to demand the balance payment and asked the homebuyer to take possession of the flat. When the homebuyer raised concerns about the project's unreasonable delay and the substandard materials used in construction, the builder offered delayed interest of Rs. 3,02,773/-, which the homebuyer found inadequate. The homebuyer contended that they have suffered due to the project's delay and felt harassed since 2009. Therefore, the homebuyer filed a complaint before the authority seeking a refund with interest. Observation and direction by Authority The authority noted that the homebuyer filed a combined complaint to seek a refund and compensation for delayed possession. On 31.12.2021, the authority split the complaint into two parts. The Regulating Authority handled the complaint for a refund and interest. However, on 25.08.2023, they dismissed it because the homebuyer had already accepted possession of the flat on 08.07.2023. The authority observed that Section 18(1) of RERA, 2016 covers cases where the builder fails to complete the project within the agreed time. In such cases, the homebuyer can choose to withdraw from the project and request a refund of the paid amount with interest, as well as compensation, according to the rules. The authority also noted that if the homebuyer chooses to stay in the project and wants possession of the flat, the only solution for the builder's delay is to receive interest on the paid amount from the promised possession date until the actual handover date. Therefore, the authority held that since the homebuyer had already taken possession of the flat, they are not entitled to any compensation for the delay in completing the project. Thus, the authority dismissed the homebuyer's complaint. Case – Sandeep Punj Versus M/s Ansal Properties and Infrastructure Limited & others Citation - Complaint No.RERA/AdC No.0127 /2021

Punjab RERA – Homebuyer Who Accepts Possession Can't Claim Refund From Builder

Aryan Raj

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Punjab RERA – Homebuyer Who Accepts Possession Can't Claim Refund From Builder

Aryan Raj

This is a premium content Available exclusively to Our subscribers

INR 1099+GST

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This is a premium content
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