Tendency of real estate promoters to cheat innocent buyers by adopting clever tactics must be curbed: Haryana Tribunal

The Haryana Real Estate Appellate Tribunal has made it clear that the tendency among real estate promoters to cheat innocent buyers by “adopting clever tactics” needs to be curbed and “stern measures are required for the purpose”.

The assertion came as the Tribunal directed the promoter of a project in Gurugram’s Sector 71 to refund the earnest money deposited by the allottees along with 10.85 per cent, per annum, interest from the deposit date till realisation within 90 days.

“It is ordered that in case refund is not made within 90 days, the provisions of Section 64 of the RERA Act will come into play and the promoter would pay a penalty of Rs 10, 000 per day till he refunds the amount to the allottees,” the Tribune ordered.

The directions came as the Tribunal, comprising chairman Justice Rajan Gupta, Member Judicial Dr Virender Parshad and Member Technical Dinesh Singh Chauhan allowed the appeals filed by the allottees for refund, stating that they had an unqualified right to exit the project before the application for occupation certificate was made. The allottees in the three appeals before the Tribunal were represented by counsel Harkirat Singh Ghuman.

Speaking for the Tribunal, Justice Gupta observed that the promoter issued an advertisement promising “three deals in one”, inviting applications for commercial units in the project. The advertisement said the allottees were to pay only 10 per cent on booking with the balance due on offer of possession, and they could exit the project at any time. The appellant-allottees applied for a commercial unit measuring 403 square feet at a total consideration of Rs 1,20,61,967 and paid an initial Rs 12,06,196 and an allotment letter dated August 7, 2020, was issued.

The promoter contended that 80 per cent of the sale consideration was payable on applying for the occupation certificate, which was initially submitted on August 31, 2021, but rejected due to technical defects. A fresh application was made on December 1, 2021, and the certificate was eventually granted on December 13, 2021.

Justice Gupta, however, observed that the allottees had already sent an e-mail on November 14, 2021, seeking a complete refund, prior to the fresh application for occupation certificate. “It leaves no room for doubt that the allottees sought refund well in time before the occupation certificate was applied for,” the Tribunal stated.

Referring to the regulatory purpose of the Real Estate (Regulation and Development) Act, 2016 (RERA), Justice Gupta asserted it was put in place to ensure sale of plots, apartments or buildings in an efficient and transparent manner.

“Wherever it is found that terms and conditions of advertisement are being violated and there is tendency to exploit the allottees, the authority is required to exercise its powers and to ensure that objectives of the RERA Act are not defeated and provisions thereof are promptly invoked to ensure justice to the aggrieved party.”