The Haryana real estate regulator requests that 17 builders provide homebuyers a refund of Rs. 50 cr

Updated: Aug 4

The Haryana real estate regulator has ordered 17 builders to return a total of Rs 50 crore to homebuyers of various ongoing projects for failing to deliver housing units on time. These builders have been ordered by the Haryana Real Estate Regulatory Authority (HRERA) on numerous occasions to repay the money paid by homebuyers together with interest at a 9.70 percent rate within 90 days.

The rulings state that the reimbursements must be made while also paying for the allottees' legal fees and the opportunity to sue for damages. The RERA decisions follow several complaints from city-based homebuyers who filed refund requests with the RERA after the builders failed to deliver their housing units to them within the allotted time frame.

"The authority has directed to reimburse deposited funds to homebuyers after hearing both the parties — builders and allottee — and on finding builders guilty for non-delivery of units as per builder-buyer agreements," said KK Khandelwal, chairman of RERA. Even after receiving sizable upfront payments, the builders failed to finish the projects and deliver the promised units to homeowners within the allotted time, continued Khandelwal.

In July, nearly 300 matters were listed before the authority for adjudication. In 63 cases, the authority ordered refunds with interest at the rate of 9.70 percent. These adjudications pertain to 17 builders and the refund amount is close to Rs 50 crore.

Nearly Rs 12 crore must be refunded to eleven purchasers by Raheja Developers alone, of which one repayment is worth Rs 2.35 crore. The authority mandated reimbursements in 15 additional cases, less a 10% earnest money deduction.

The majority of homebuyers requested refunds in each of the 300 cases, which, according to the government, demonstrates the promoters' callous attitude. On July 12, the suit of Ritu Gupta versus Raheja developers was decided. The ruling states that the complainant "ought authority to instruct respondent builders to repay their deposited amount with the interest from the various dates of deposit until the date of refund."

In its decision on Gupta's case, the authority ordered Raheja Developers to return Rs 29,88,092 — the sum she had paid the developer in two installments in December 2013 when she reserved a unit in the new Raheja Navodaya project at Sector 92/95 in Gurugram.

While addressing several complaints made by customers against promoters Samyak Projects, Vatika, CHD Developers, DSS Buildtech, and Experion Developers, the authority also ordered refunds of roughly Rs 6.81 crore.

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