An Allahabad resident who paid ₹14.5 lakh towards a housing project in Gurugram's Dhanwapur village area has successfully secured a full refund after the builder lost its registration, leaving the construction site stalled. According to reports from The Economic Times, the homebuyer initially paid ₹1,28,470 to the builder, following which the payment was acknowledged and he was allotted one unit. Over time, he paid almost half of the flat's total consideration of ₹26 lakh and was issued an allotment letter in December 2021.
The homebuyer claimed that after making the payment, he tried to contact the developer on several occasions, which did not elicit a satisfactory response. As reported by The Economic Times, he decided to visit the property site, where he found that construction progress had been stalled. "The respondent was never able to give any satisfactory response to the complainants for delay in construction of the unit and was never definite about the delivery of the possession," the homebuyer stated, adding that he kept pursuing the matter despite the builder's incomplete responses.
In RERA's judgment, the builder was directed to refund the full amount paid by the homebuyer, which amounted to ₹14.5 lakh, along with interest at the rate of 10.80% per annum from the date of each payment till its actual realisation. According to the authority's order, the developer has been given 90 days to comply with the ruling, warning that failure to make the payment could invite legal consequences. The complainant was also told that he may separately approach the Adjudicating Officer to claim that relief.
Haryana RERA stated that if a developer discontinues its business due to suspension or revocation of its registration under the RERA Act, 2016, or for any other reason, the complainant is entitled to a full refund of the amount paid to the builder, along with applicable interest. As reported by The Economic Times, since the registration certificate of this particular Gurugram project stands revoked, the developer cannot carry out the business. The authority maintained that due to the builder's serious violations, there seems to be no possibility of completing the said project by the promised timeline.
According to Section 18 of the RERA Act, 2016, if a promotor fails to complete the construction of a property or is unable to give possession of an apartment, plot or building, they must initiate a refund of the token money or full amount that is paid by the homebuyer. The exact compensation (including interest) depends on the terms of the agreement for sale and facts of the relevant case. This rule applies in cases where a business of a developer is discontinued due to suspension or revocation of their registration for any reason.
