The Haryana Real Estate Regulatory Authority (HRERA), Gurugram ordered Vatika Limited to refund money to 28 allottees with interest at the prescribed rate. The order has come in the backdrop of a project in which the promoter failed to commence construction even at the primary level.
The court said that the promoter Vatika will have to pay the loan amount to respective banks also if or in case the same is availed by the allottees.
“Since the project has been abandoned by the promoter, the allottees are entitled to the refund of the amount paid by them to the promoter against the allotment of their units with interest at the prescribed rate of 10.25 per cent per annum from the date of each payment till the date of actual realisation within the timelines as prescribed under the rule 16 of the Rules 2017,” said the HRERA court.
The court said, “However while depositing sale consideration of the allotted units, some of the allottees raised loans from the different financial institutions and the same was paid to the promoter. While refunding the amount deposited by the allottees who raised loans against the allotted units, the promoter would be liable to pay that amount with interest up to date to those financial institutions and the remainder, if any, would be paid back to the allottees.”
The case pertains to a real estate project ‘Turning Point’ of Vatika Limited located at sector 88-B, Gurugram. Vatika Limited obtained a licence from the DTCP in 2013 to develop Turning Point – a residential group housing project.
The court observed, “After its launch by the promoter, units in the same were allotted to different persons on different dates and that too for variable sale consideration. Though the due date for completion of the project and offer of possession of the allotted units was mentioned as the validity of the registration certificate being September 15, 2025, after the expiry of more than four years from the booking, there is no physical work progress at the site except for some digging work.”
So, keeping in view all these facts, 28 allottees of the project approached the authority seeking a refund of the paid-up amount besides compensation by taking a plea that the project has been abandoned.
Keeping in view the complaints, the authority marked an enquiry into the affairs. The authority directed the enquiry officer to report also about the compliances of the obligations by the promoter regarding the project and more specifically having regard to 70 per cent of the amount collected from allottees of the project minus the proportionate land cost and construction cost whether deposited in the separate HRERA account as per the requirement of the Act of 2016 and Rule 2017.
The enquiry report mentioned, “There is hardly any progress regarding development such as the construction of the site.”
K.K. Khandelwal, HRERA chairman, said, “Such offences are unacceptable. The promoters cannot take allottees for granted after realising their hard-earned money. HRERA has to act as per the law and ensure allottees’ money is safe and they get also compensation for mental trouble.”