ASSURED RETURN CONSUMER RERA CASE CHANDIGARH PANCHKULA MOHALI

Last Updated on February 14, 2021 by Satish Mishra

In this post we will discuss about the legality of Assured return plans/Assured return schemes in various court of laws in India.

Assured return scheme/Assured return plan is the most popular bait that comes before homebuyers given by developers to lure into the property purchase but only a few can continue this till end and when this return stops, consumer is in rush to resolve the dispute either before any court of law. Be it Consumer Forum, State Commission or the newly formed RERA Punjab and Haryana Real Estate Regulatory authority.

So far Indian laws don’t recognize Assured return plan/scheme in any of the statutes be it consumer or RERA Act and thus no protection is given be either court.

But interestingly things have changed; I have been finding judgments of State Consumer commission giving assured returns to homebuyers who have genuinely purchased the property for their livelihood. But the conditions for the same are:

  1. You should be a consumer and not a property investor as per the Act.
  2. The property should be taken for livelihood and no other purpose

Just by saying these facts it won’t suffice and it is necessary to prove these facts in court of Law. The mode by which you have made payments will make it utter clear whether you have a case of assured return or not.

ALSO READ- REALTY COMPLAINTS ONLY TO RERA

  • First for RERA Punjab Authority.

It doesn’t recognize the Assured Return Plan/Assured Return Scheme and thus no favourable judgment is there till date. You can view them here. Even my case is also listed here. Even my case is also listed here.

  • Second Haryana RERA Panchkula/Gurugram Authority.

The view is assured return is not a formal clause with regard to giving or taking possession of unit for which, the buyer is not within the purview of RERA Act. Rather it is a civil matter. You can read the Judgment here.

ALSO READ- DOES RERA COVER COMMERCIAL PROJECTS?

So before RERA Authorities, the answer is in negative.

  • Now the State Consumer Commission.
  • Previously, it was all dismissed and you can see the judgment here yourself. But now in the last quarter of 2020, the view has been reversed and courts are ordering Assured return. You can read them here as well. I am a bit perplexed because, this is a certain change of view of consumer court yet to be tested by Supreme Court who has already decided the preposition on it.

Now a Consumer can only come and seek benefit of assured return plan if it is evident that livelihood was required to be maintained by the income and he is not a property purchaser. But I am confident of next round of litigations also in Supreme Court because the view is yet to be affirmed by the top court.

So Consumers should keep that consideration in their minds. A commercial property cannot be just purchased for investment purposes; it can also be a source of income or livelihood for the homebuyers which need to be tested.

So this post is helpful for:

  1. Homebuyers who have not received assured return on the property.
  2. Legality of Assured returns Schemes in India.
  3. Despite SEBI Ban why builders offer Assured return plan.
  4. Whether it is safe to invest in assured return plans
  5. Risk with assured return plans

ALSO READ-SUPREME COURT STAYS PUNJAB HARYANA HIGH COURT RERA JUDGMENT

This post was written by Advocate Satish Mishra.

Hope this post helps. Rest you are master of your own life, so stand on your decision regarding property purchase.

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