The Punjab Real Estate Regulatory Authority (RERA) directed Sushma Developers and its directors to execute a registered sale agreement and transfer a commercial unit in the Sushma Empiria project to the legal heirs of a deceased Major General, while awarding assured returns at 12% per annum for a specified period and statutory interest for the subsequent delay in handing over possession.
The authority also directed its secretary to initiate separate proceedings against the promoter under Section 61 read with Section 13(1) of the Real Estate (Regulation and Development) Act, 2016, over accepting more than 10% of the sale consideration without executing a written sale agreement.
The complaint was filed by the legal representatives of Maj Gen Dr Shamsher Singh Chauhan, who booked complete business unit (CBU) no. 12 in the project on January 29, 2020. The family claimed that he paid ₹3 crore between January and June 2020 but the developer never executed a registered sale agreement.
The developer disputed the amount, claiming it had received ₹1 crore towards the basic sale price. It argued that other payments related to proposed bookings of additional units that were never finalised. It also maintained that possession was due by December 31, 2027.
In its order, the authority held that an offer letter or other informal documents could not replace the statutory sale agreement. It directed the promoter to execute the agreement and complete the transfer in favour of the legal heirs in accordance with the law and sanctioned plans.
{{/usCountry}}In its order, the authority held that an offer letter or other informal documents could not replace the statutory sale agreement. It directed the promoter to execute the agreement and complete the transfer in favour of the legal heirs in accordance with the law and sanctioned plans.
{{/usCountry}}The authority awarded assured returns at 12% per annum on the claimed basic sale price of ₹3 crore from April 1, 2021, to January 28, 2023, after adjusting payments already made under the assured-return or discount arrangement. It also directed the promoter to pay statutory interest under Section 18 from January 29, 2023, until lawful possession, while barring double recovery for the same period.
The family had also claimed that the unit’s represented carpet area of 5,040 sq ft fell short by about 817 sq ft, resulting in an alleged excess charge of ₹69 lakh. RERA directed the promoter to submit sanctioned plans, an authenticated area statement and a calculation of the amount attributable to the permissible carpet area within 30 days. It ordered a refund with applicable interest if the verification establishes an excess recovery.
The authority directed the promoter to comply with the remaining directions within 60 days of receiving a certified copy of the order. It also laid down a recovery process if the monetary directions remain unfulfilled.