Section 88: The complainant wants to withdraw from the project and claims his amount with interest and compensation

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

Mr.Kutbuddinllussscinbhai Lokhanclwala V/s Reliance Enterprises (CC006000000001634) Order dated: 4th April 2018

The complainant has filed this complaint u/s. 18 of Real Estate Regulation and Development, Act 2016 (RERA). He contends that he and his wife booked Apartment. This apartment is in the sale component of the Respondent SRA project. The complainant contends that he has paid the entire amount of consideration. The respondents agreed to deliver the possession of the flat by December 2015. The Agreement for Sale to this effect has been executed on 31.01.2015. The respondents have failed to deliver the possession of the flat by December 2015 and stopped the construction from April, 2016.

The complainant wants to withdraw from the project and claims his amount with interest and compensation. The learned Advocate of respondents submits that the respondents were required to take several permissions and approvals from various authorities mentioned in the letter of intent dated 1910 2011 At this stage it is necessary to keep in mind that Maharashtra Ownership of Flat Act, 1963 is in force and Section 88 of RERA permits its application.

The agreement for sale has been executed in accordance with the provisions of Maharashtra Ownership of Flat Act. Section 8 of the said Act provides remedy of refund of the allottees’ amount on promoter’s failure to give possession in time. Its clause (b) provides that if the promoter for reasons beyond his control is unable to give possession of the flat by the date specified and a period of 3 months thereafter or a further period of 3 months, till the reasons still exist, then promoter shall be liable on demand to refund the amount already received by him with simple interest @ 9% p.a. from the date he received the same till they are refunded.

Maha RERA Ordered: The complainant is entitled to 8et refund of the amount paid by him to the respondents and except the amount of stamp duty, the amount of registration charges and taxes spent by him because respondents have failed to deliver the possession of the flat on agreed date. Respondents have defaulted in keeping their promise and hence they must shoulder liability of repayment. In addition to the above amount, the complainants are entitled to get Rs. 20,000/- towards the cost of the complaint.

Credits: Landmark Judgements of RERA (Book)

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