Will change in carpet area or possession date attract Section 12?

By Dr. Sanjay Chaturvedi LLB, Ph.D.

Vaibhav Singh V/s Radius & Deserve Builders LLP (CC006000000001159) Order dated: 7th March 2018

The complainant claims his amount with interest and/or compensation under Section 12 of The Real Estate (Development and Regulation) Act, 2016 from the respondents as the respondents changed the date of the completion of the project from 2022 to 2024 and increased the carpet area of his flat. The respondents themselves have mentioned while registering their project that initially they intended to complete the project in the year 2020 and now they are going to complete it in the year 2024. So these facts relied by the complainant have been admitted by the respondents themselves. It is also not in dispute that at the time of booking the respondents represented the complainant that the carpet area of the flat was 221 sq.ft. whereas while registering the project they have demonstrated that it is 225 sq.ft. and therefore, they have been claiming Rs. 50,24,600/- in the place of Rs. 49,49,000/- initial price of the flat.

Section 12 of RERA provides that where any person makes an advance or deposits on the basis of information contended in the notice, advertisement, prospectus as the case may be and if any loss or damage by reason of any incorrect, false statements included therein is caused to such a person, if he intends to withdraw from the proposed project, he is entitled to get return of his entire investment along with interest at the prescribed rate.

Maha RERA Ordered: Respondents shall pay the complainant Rs.70,27,692/ with simple interest @ 10.05% from the date of its receipt as mentioned in para 2 of this order till its repayment.

Credits: Landmark Judgements of RERA (Book)

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