Share this

The Haryana Real Estate Regulatory Authority (H-RERA) has directed the builder of Landmark Cyber Park to refund the amount paid by a complainant after the builder failed to pay the assured monthly return. The H-RERA bench, led by Sanjeev Kumar Arora, issued this order based on the builder’s failure to comply with the terms of the Memorandum of Understanding (MOU).

Background of the Case

The complainant had booked a 230 sq. ft. unit in the commercial project Landmark Cyber Park, located in Sector 67, Gurgaon, by signing a MOU on February 21, 2012. The complainant paid a total amount of Rs. 46,00,000 upfront. According to Clause 4 of the MOU, the builder had promised to pay the complainant Rs. 46,000 as an assured return or rent on a monthly basis, payable quarterly, until the date of possession or for three years, whichever was earlier.

🌟 Discover Landmark Judgements and Orders! 🌟

Builder’s Failure and Complainant’s Grievance

The builder stopped paying the assured return from November 2013 onwards. Aggrieved by this breach of agreement, the complainant approached the H-RERA seeking a refund of the amount paid along with interest.

Builder’s Contentions

The builder argued that the complainant had paid Rs. 46,00,000 as per the MOU terms, but additional payments such as External Development Charges (EDC), Internal Development Charges (IDC), Interest Free Maintenance Security Charges (IFMS), and advance maintenance charges were also required. The builder further claimed that there was no specified time limit in the MOU for handing over possession of the unit, as it was sold under an assured return plan.

Authority’s Observation and Ruling

The H-RERA, referencing the Supreme Court case Pioneer Urban Land & Infrastructure Ltd. versus Govindan Raghavan, determined that buyers should not have to wait indefinitely for possession and are entitled to a refund with compensation if there is no stipulated delivery period. The court had held that three years is a reasonable time for completion if there is no agreement for sale between the parties.

The Authority set the possession date as three years from the signing of the MOU, i.e., February 21, 2015. Since the Occupancy Certificate was received on December 26, 2018, and the complainant surrendered the unit on February 18, 2022, the Authority found the builder at fault.

Final Directive

H-RERA referred to Regulation 11(5) of the Haryana Real Estate Regulatory Authority Gurugram (Forfeiture of Earnest Money by the Builder) Regulations 2018, which limits the forfeiture amount to no more than 10% of the consideration amount. Consequently, the Authority ordered the builder to refund Rs. 46,00,000 after deducting 10% as earnest money, along with an interest rate of 10.85% per annum.

Share this

Unlocking RERA 100 Landmark Rulings and 1 Year Subscription

Leave a Reply

Your email address will not be published. Required fields are marked *