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The Haryana Real Estate Regulatory Authority (H-RERA) has ordered a developer to refund INR 5.8 lakh with 11% annual interest to Bharat and Poonam Gupta, citing violations of the Real Estate (Regulation and Development) Act, 2016. The buyers alleged that after booking a flat in Mahira Homes in 2019 and paying the required amount, the builder failed to issue receipts, provide a sale agreement, or secure necessary approvals. After the builder cancelled the booking and refused a refund, H-RERA intervened, finding the developer in breach of legal requirements. The ruling underscores the importance of stringent enforcement of real estate laws to protect homebuyers.
The Haryana Real Estate Regulatory Authority (H-RERA) has issued a directive against a developer in Sector 103, instructing them to refund INR 5.8 lakh along with 11% annual interest to homebuyers Bharat and Poonam Gupta. The decision was made after the buyers alleged that the builder failed to fulfil its commitments regarding their flat in Mahira Homes. Advertisement
In April 2019, the Guptas booked a 2BHK apartment and paid an initial amount of INR 1.15 lakh. By July of the same year, they received an allotment letter for flat 703 in Tower G, a 570-square-foot unit priced at INR 23.3 lakh. Following this, the buyers paid an additional INR 4.7 lakh via cheque, making their total payment INR 5.88 lakh. However, they claimed the builder did not provide a receipt for the second transaction.
Later that month, the Guptas asked for a builder-buyer agreement to facilitate a home loan, but the developer refused, citing the lack of an environmental clearance certificate. Despite this, the builder allegedly continued to demand further payments. When the buyers sought a loan from Punjab National Bank, their application was rejected. Matters worsened in January 2020 when the developer unilaterally cancelled the flat's booking without offering a refund.
With no resolution in sight, the buyers approached H-RERA in January 2023. During hearings held in early 2024, the developer failed to respond despite repeated instructions. H-RERA ultimately ruled that the builder had violated Section 13(1) of the Real Estate (Regulation and Development) Act, 2016, which prohibits collecting over 10% of a property's price without executing a formal sale agreement.
Adding to the controversy, Mahira Homes had faced regulatory issues, including frozen accounts and blacklisting in May 2022 due to multiple violations. By March 2024, the project's registration was revoked, barring the sale of unsold units. Considering these factors, H-RERA ordered the developer to refund the full amount paid by the buyers with 11.1% annual interest within 90 days. Non-compliance will result in further legal action.
The H-RERA ruling serves as a reminder of the challenges buyers face when dealing with unregulated real estate projects. By holding the developer accountable, the authority has reinforced the need for compliance with the Real Estate (Regulation and Development) Act, 2016. While the decision offers relief to the Guptas, it underscores the broader need for stringent enforcement of laws to safeguard buyers' interests and ensure accountability in the real estate sector.
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