Registered Agreement for sale good enough for refund if possession not given as mentioned in Agreement

A promoter cannot hide behind excuses of litigations because of his own wrongdoing.

By Dr. Sanjay Chaturvedi, LLB, Ph.D.

Ajit Rasiklal Sanghvi V/s Shree Ram Urban Infrastructure Ltd (CC005000000001502) Order dated: 16th March 2018

The complainants have filed this complaint to get refund of their amount with interest and/or compensation paid by them in the context of purchasing a residential flat. The Complainants contend that they booked the above mentioned flat together with two garages on 17.07.2075 for Rs 25 crores The respondents agreed to deliver the Possession of the flat and garages on or before 31st December 2077 but failed to deliver the same as agreed.

Therefore, complainants claim their amount as they want to withdraw from the project. The registered agreement for sale has been placed on record, it shows that the respondents agreed to deliver the possession of the flat and garages on or before 31’t December 2017. So far as the reasons for delay are concerned, respondents have mentioned list of litigations faced by them in respect of the Project. It appears that the litigations arise only because the construction was not made in accordance with the sanctioned plans and therefore, the respondents cannot take the advantage of their own wrong to contend that because of those litigations the completion of the project is delayed.

Maha RERA observed: The Section 18 of RERA provides that allottee can claim refund of his amount with interest and/or compensation if the Promoter fails to deliver the possession of the apartment on the date specified in the agreement. It gives the option to allottee to withdraw from the Project. In view of this provision, the complainants have exercised their right to withdraw from the project and claim refund of their amount with interest.

Maha RERA Ordered: Respondents shall pay the complainants all the amount shown in
Exh ‘A’ except the amount of Stamp Duty with simple interest at the rate of 10.05 % per annum from the respective dates of their payment either to the respondents or to the Government as the case may be, till they are re-paid.

Credits: Landmark Judgements of RERA (Book)

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