Rajasthan RERA Orders Compensation For Complainant After Builder's Failure To Handover Possession Of Purchased Shop

Aryan Raj

14 May 2024 3:30 AM GMT

  • Rajasthan RERA Orders Compensation For Complainant After Builders Failure To Handover Possession Of Purchased Shop

    Rajasthan Real Estate Regulatory Authority (Authority) Bench, comprising Justice RS Kulhari (Adjudicating Officer), has directed the builder to compensate the complainant who purchased a shop in the builder's project for the delay in handing over possession, despite paying all consideration and associated charges. Background Facts The complainant booked a shop (GF-10) in the...

    Rajasthan Real Estate Regulatory Authority (Authority) Bench, comprising Justice RS Kulhari (Adjudicating Officer), has directed the builder to compensate the complainant who purchased a shop in the builder's project for the delay in handing over possession, despite paying all consideration and associated charges.

    Background Facts

    The complainant booked a shop (GF-10) in the builder project named Parsvnath City Centre Bhiwadi against a basic sale consideration of Rs. 22,53,875/-. A commercial Space agreement was executed on 31.01.2014, where the builder acknowledged receiving Rs. 12,95,978/- till that date. The agreed date of delivery was set to be 30 months from the commencement of construction or from the date of booking, whichever is later.

    Subsequently, the complainant made further payments totaling Rs. 25,18,796/-, which exceeded the basic price and included other charges as per the agreement. However, the project faced delays, prompting the complainant to file a complaint before the Authority seeking a refund of the amount with interest and compensation.

    The Authority, in its order dated 03.06.22, directed the builder to refund the deposited amount along with interest at 9.4% per annum from the expected date of delivery, excluding the moratorium period. Additionally, the complainant was granted liberty to approach the adjudicating officer for any compensation claim.

    Consequently, the complainant filed the complaint before the adjudicating officer seeking compensation and reimbursement of litigation costs, alleging inconvenience, great loss, damages, mental tension, and loss of investment value.

    Observation and Direction by Authority

    The Authority observed that it is a settled principle that once the agreed date for possession elapses, the complainant gains an unqualified right to possession. If possession is not provided by that day, the complainant may opt for a refund along with interest and compensation. Alternatively, if the complainant wishes to obtain possession, they may claim interest for each month of delay.

    The Authority observed that the builder violated Section 18 by failing to deliver possession despite availing the force majeure period until July 2016. No convincing reasons were provided for the delay. Given that the deadline lapsed in 2016, neither the impact of Covid-19 nor any other justifiable factors presented by the Builder could excuse the delay. Consequently, the Builder's actions contravened Section 18 of the RERA Act, entitling the complainant to adequate compensation.

    Therefore, the Authority directed the Builder to pay interest at a rate of 2.5% per annum on the total deposited amount from 01.08.2016 until the date of payment, along with Rs. 1,00,000/- for deficiency in service, loss of opportunity, and physical and mental agony caused to the complainant. Additionally, the Authority directed the Builder to cover the cost of litigation by paying Rs. 20,000/- to the complainant.

    Case – Dinesh Agrawal Versus Parsvnath Developers Limited

    Citation - Complaint No.RAJ-RERA-C-2023-6030



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