Rajasthan RERA Orders Compensation For Homebuyer Who Booked Flat Under CM Jan Awas Yojna

Background Fact

The Homebuyers initially booked a flat in the Builder's project named Pari Residency under the Chief Minister's Jan Awas Yojna, for a total sale consideration of Rs. 10,02,700/-. An initial payment of Rs. 90,000/- was made at the time of booking on 16.02.2016. Subsequently, additional amounts were paid both from their own pocket and through a loan from Axis Bank, totalling Rs. 7.76 Lacs. An agreement of sale was executed between the parties on 26.12.17, with the expected delivery date set for 31.03.20.

However, the project was not completed within the stipulated timeframe, with no prospects for completion in the near future. Consequently, the Homebuyers filed a complaint before the Authority, seeking a refund of the amount paid along with interest. In its order dated 31.05.2023, the Authority directed the Builder to refund the entire amount along with interest calculated at 10.70% p.a. from the date of each deposit till the date of refund.

Subsequently, the Homebuyers filed a complaint before the Authority, alleging that despite depositing 80% of the sale consideration, the Builder failed to offer possession. The Builder's actions resulted in significant financial losses, loss of opportunity, and both physical and mental agony for the Homebuyers. Therefore, the Homebuyers are seeking compensation for the loss of interest and on account of deficiency in service, in addition to the cost of litigation.

Observation and direction by Authority

The Authority observed that the Homebuyers have deposited Rs. 7.76 lacs out of the total sale consideration of Rs. 10,02,700/-, which amounts to about 78%. The agreed date for possession was 31.03.2020, but there is no evidence that any offer of possession was given at that time.

Furthermore, Authority Observed that the defence presented by the Builder for the non-completion of the project is not convincing. Although there was an impact of Covid-19 from March 2020 to June 2020, this may have caused a delay of about 2-4 months, but it cannot justify a delay of more than 3 years. The alleged impact of new Government policies and the unavailability of raw material for construction also do not provide sufficient justification for the delay, as the Builder was expected to arrange the raw material by any means. Additionally, if other Homebuyers have not deposited the amount on time, the Homebuyers should not be penalized for the faults of others. The Builder was otherwise obligated to manage the funds for the completion of the project.

The Authority also noted that as soon as the agreed time is over, the right of the Homebuyers triggers for getting the refund with interest and compensation, or for possession with interest for every month of delay. Since the builder has failed to deliver possession on time, the builder has violated sections 18 and 19 of the Real Estate Regulation and Development Act 2016, and therefore, homebuyers are entitled to adequate compensation.

Therefore, the Authority directed the Builder to pay interest at 1.5% per annum simple on the total deposited amount from each deposit date until payment. Additionally, the Builder was directed to pay Rs. 80,000/- for deficiency in service and Rs. 20,000/- for litigation costs to the Homebuyers.

Case – Mr. Ramawater Saini & another Versus M/S AKG Affordable Housing Private Limited

Citation - Complaint No.RAJ-RERA-C-2023-6758