REAT Haryana: The Amended Affordable Housing Policy Cannot Be Applied Retrospectively To Alter The Pre-Existing Agreement

Background Facts

On July 24, 2018, the appellants ('allotee') were allocated a flat unit in a project of the respondent ('Promotor'), situated in Gurugram under the Affordable Housing Policy, 2013.

The buyer's agreement was signed on March 6, 2019. According to the agreement, the possession due date was January 9, 2021.

After the implementation of the Amended Affordable Housing Policy in 2019, the respondent demanded additional payment for the allocated flat from the appellant, exceeding the amount stipulated under the Affordable Housing Policy of 2013.

On April 6, 2019, the respondent cancelled the unit allotment, citing non-payment of the additional demands after the appellant failed to meet the new payment requirements under the amended policy.

Aggrieved by the cancellation of the allocated flat, the appellant filed a complaint in the HRERA and prayed for the restoration of the cancelled unit to the appellant.

The HRERA, through an order dated 27.09.22, dismissed the appellant prayer to restore the allocated flat but directed the respondent to refund the amount of Rs. 3,20,537 paid by the appellant.

The Appellant filed an appeal before the Tribunal against the authority's order dated 27.09. 2022.

REAT Verdict

The Bench while allowing the appeal of appellant, set aside the HRERA order dated 27.09.2022.

The Tribunal held that the amended Affordable Housing Policy, 2019 cannot be applied retrospectively to alter the financial obligations outlined in the pre-existing agreement.

The Tribunal directed the respondent to refund the total consideration received from the appellant, along with interest, and imposed an exemplary cost of 2 lakh on the respondent.

Furthermore, the Tribunal also directed the respondent to allocate an equivalent flat unit to the appellant within two months.

The Tribunal observed that “the retrospective application of the amendment to the Affordable Housing Policy Amendment of 2019 has impacted the Home buyers, who had already complied with the conditions of the agreement.”

In conclusion, the HREAT held that the affordable housing policy cannot be applied retrospectively to alter pre-existing agreements. Additionally, it ordered the respondent to refund the payment with interest and imposed a 2 lakh exemplary cost.

Case: Selvaraj Damiyon Raju & anr vs Forever Buildtech Pvt. Ltd.

Citation: Appeal no.24 of 2023

Counsel for Appellant: Mr. Rishab Jain

Counsel for Respondent: Mr. Suvir Kumar