Post covers Sanskriti Group Of Companies RERA Complaint wherein refund granted for possession Delay.
RERA Punjab Complaint against Sanskriti Group Of Companies
The Real Estate (Regulation and Development) Act, 2016, protector of the home-buyers
This bill was passed by the Rajya Sabha on 10th March 2016 and by Lok Sabha on 15th March 2016 and came into force on 1st May 2016. Prior to this act, the real estate industry was not regulated where the issues delay price, quality of construction, property developers cheating property buyers and since to authority was there were no mechanism to listen to the grievances. The objectives were to have some accountabilities for the property developers as well as the buyers, and since there will be accountabilities, there will be a boost in the investment in the real estate sector. In addition to that, the act also aims to have a uniform regulatory structure where the buyer’s rights are enshrined and protected. The act applies to both commercial as well as residential Real Estate projects. Under this act Appellant Authority at state and Union Territory Level was established. In this case study, we will go through a case where the complaint was lodged under the Section 31 of this Act and will see how the compensation was given as directions mention under Section 72 that was filed in Real Estate Regulatory Authority, Punjab
Also Read- Orders/ Judgements by Adjudicating Officer – RERA Punjab
Sandeep Bhattacherjee vs M/s Sanskriti Group of companies
Complaint No. AdCNo.1292/2019 Dated of Institution: 09.08.2019
Date of Order:18.06.2020
Brief facts of the case
The complainant lodged a complaint in relation that to despite the complainant paying Rs.25,30,000 in instalment, there was no development in the possession of apartment, which is SJC/SF/203 in the project namely Sanskirit J Classic Residency and the re-allotted apartment No. SF/R3/106/III in DLF Hyde Park, New Chandigarh had not been delivered. Since, no development work took place the complainant stopped making further payments and wants to withdraw from the project. The complainant claims that the opposite parties have violated the Section 18 of Real Estate (Regulation and Development) Act, 2016. The complainant claims that the actions by the opposite parties amounts to unfair trade practice and seeks refund with interest and compensation. The complaint is being filled under section 31 read with section 71
(Section 31: Filing of complaints with the Authority or the adjudicating officer
(1) Any aggrieved person may file a complaint with the Authority or the adjudicating officer, as the case may be, for any violation or contravention of the provisions of this Act or the rules and regulations made thereunder, against any promoter, allottee or real estate agent, as the case may be.
Explanation. –For the purpose of this sub-section “person” shall include the association of allottees or any voluntary consumer association registered under any law for the time being in force.
(2) The form, manner and fees for filing complaint under sub-section (1) shall be such as may be 1 [prescribed].
Also Read- File Your Complaint Online With Rera Punjab
Reply from the opposite parties
There was no response from the opposite parties and were proceeded against the ex-parte vide order dated 18.11.2019.
Evidence submitted by the complainant
- Four Payment Receipt of the amount of 25,30,000 given in instalment.
- Allotment letter having the date of 09.09.2016 (for the booked apartment)
- Another allotment letter (of the re-allotted apartment)
- Police complaint
Observation by the Authority
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The evidence submitted by the complainant clearly proves that the complainant booked the apartment SJC/SF/203 in the project namely Sanskirit J Classic Residency, after that, in the place of apartment mentioned above the complainant was re-allotted in the No. SF/R3/106/III in DLF Hyde Park, New Chandigarh. As per the clause 30 (a) allotment letter dated 09.09.201, the opposite parties were to deliver the possession of the apartment within the period of 24 months with the extended period of six months from the date of start of the construction. The complainant have also submitted the documents informing that he has paid an amount of Rs.25,30,000 in instalment and since no development work took place in the construction site, the complainant stopped making any further payment and was constrained with seeking refund. The act of opposite parties not delivering the possession of property in question within the period of 30 months including six months of extended time from the start of the construction does make opposite parties at fault. This mischief act of the opposite parties makes it the violation of section 18 of Real Estate (Regulation and Development) Act, 2016
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Section 18: Return of amount and compensation
(1) If the promoter fails to complete or is unable to give possession of an apartment, plot or building, —
(a) in accordance with the terms of the agreement for sale or, as the case may be, duly completed by the date specified therein; or
(b) due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this Act or for any other reason,
he shall be liable on demand to the allottees, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment, plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf including compensation in the manner as provided under this Act:
Provided that where an allottee does not intend to withdraw from the project, he shall be paid, by the promoter, interest for every month of delay, till the handing over of the possession, at such rate as may be prescribed.
(2) The promoter shall compensate the allottees in case of any loss caused to him due to defective title of the land, on which the project is being developed or has been developed, in the manner as provided under this Act, and the claim for compensation under this subsection shall not be barred by limitation provided under any law for the time being in force.
(3) If the promoter fails to discharge any other obligations imposed on him under this Act or the rules or regulations made thereunder or in accordance with the terms and conditions of the agreement for sale, he shall be liable to pay such compensation to the allottees, in the manner as provided under this Act.
The opposite parties are obliged to perform their duty which is to undertake development work at site and deliver the possession of the property within the stipulated time to the complainant, and by failing so, the opposite parties have failed to perform their duty and the complainant have a right to get refund of Rs.25,30,000.
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The complainant also seek interest on the amount paid to the opposite parties. The fact that the opposite parties enjoyed the benefit of interest that occurred once the money was paid by the complainant, same can not be denied when the refund to the buyers. Complainant is liable to get refund of Rs. 25,30,000/- along with interest at the prescribed rate as per Rule 16 of the Act i.e., State Bank of India highest marginal cost of lending rate plus 2% w.e.f. the dates on which the payments were made to the respondents till realization.
In addition to that, since the complainant has to suffer mental agony, and to spend expenses for the claim, the compensation is defined under different act like Workman Compensation Act, Land Acquisition Act etc. The compensation can be granted under the heads pecuniary and non-pecuniary and Section 72 of the Act gives directions regarding the factors to be taken into consideration while adjudicating the quantum of compensation.
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Section 72: Factors to be taken into account by the adjudicating officer
While adjudging the quantum of compensation or interest, as the case may be, under section 71, the adjudicating officer shall have due regard to the following factors, namely: —
(a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default;
(b) the amount of loss caused as a result of the default;
(c) the repetitive nature of the default;
(d) such other factors which the adjudicating officer considers necessary to the case in furtherance of justice.
The complainant is entitled to get compensation for mental agony, litigation of Rs. 50,000
The complaint stands accepted to the following extent and the respondents are directed to pay the above said amount to the complainant within sixty days from the date of this order. In case, any amount has already been received by the complainant, from the respondents in this matter, on account of delay in delivery of possession, shall stand adjusted against the above said due amount.
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For case specific advice, please connect with Top Best Expert Legal Consultants Attorneys in Real Estate/Property Estate/Consumer Court and Consumer Protection Dispute/ Consumer Grievances and Complaints/RERA Lawyers Advocates in Chandigarh Panchkula Mohali Kharar Derabassi Zirakpur etc.
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