Firm told to refund Rs 34.79L for delayed villa possession

  • | Saturday | 14th September, 2019

Rajneesh LakhanpalLegal CorrespondentLudhiana, September 13The Real Estate Regulatory Authority (RERA) has directed M/s IREO Waterfront, Ludhiana, to refund Rs 34,79,858 with interest to a doctor couple for not handing over the possession of a villa in the stipulated period. The order came after a complaint moved by Dr Navjot Kaur and Dr Gurkirat Singh Bajwa, both residents of Sarabha Nagar. L-550 with IREO Waterfront and paid Rs 34,79,858 of its total cost of Rs 99,84,00. The allottee was also entitled to terminate the agreement and be refunded the amount by the developer within 90 days. There is nothing on the record to prove that the allottees were at fault at any stage of the agreement.

Rajneesh Lakhanpal Legal Correspondent Ludhiana, September 13 The Real Estate Regulatory Authority (RERA) has directed M/s IREO Waterfront, Ludhiana, to refund Rs 34,79,858 with interest to a doctor couple for not handing over the possession of a villa in the stipulated period. Delivering the order, the adjudicating officer of the RERA, JS Khushdil, also directed the owners of the firm to pay Rs 25,000 to the couple on account of mental agony and litigation expenses. The order came after a complaint moved by Dr Navjot Kaur and Dr Gurkirat Singh Bajwa, both residents of Sarabha Nagar. They had booked a villa bearing no. L-550 with IREO Waterfront and paid Rs 34,79,858 of its total cost of Rs 99,84,00. The rest was to be paid at the time of possession. But the respondents failed to deliver the possession in the stipulated period. Despite being sent notices, the developer failed to turn up before RERA. After perusing the record and hearing submissions made by the complainants, RERA observed that as per the agreement between the parties, the respondents were bound to hand over the villa by June 26, 2016, that is within the 24 months of agreement and not later than December 25, 2016. The authority observed that as per the Clause 9.2 of the agreement, in case of default by the developer (IREO Waterfront), the allottee was entitled to stop making further payments to the developer. If the allottee stopped making payments, the developer shall correct the situation by completing the construction milestone and only thereafter the allottee would be required to make next payment without penal interest. The allottee was also entitled to terminate the agreement and be refunded the amount by the developer within 90 days. Under this clause, the developer was liable to refund the amount paid by the complainants. There is nothing on the record to prove that the allottees were at fault at any stage of the agreement. Keeping in view the facts and circumstances, the Bench decided that the complainants were entitled to be refunded the amount.

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