E-Paper
Mohali: Senior citizen couple awarded ₹24-L refund for delayed flat delivery
The couple had paid ₹23.35 lakh out of the total price of ₹75.90 lakh and received an allotment letter on July 5, 2019; possession was promised by April 20, 2021, subject to force majeure conditions
Coming to the rescue of a senior citizen couple, the Punjab Real Estate Regulatory Authority (RERA) has directed a realty firm to refund ₹24.88 lakh in connection with a delayed flat handover.
Kavita Khajuria and Amresh Kumar Khajuria, residents of Phase 2, Mohali, had booked a unit at Sushma Valencia, a project by Suksha Developers Pvt Ltd in Nagla, Zirakpur, in June 2019.
They had paid ₹23.35 lakh out of the total price of ₹75.90 lakh and received an allotment letter on July 5, 2019. Possession was promised by April 20, 2021, subject to force majeure conditions.
The complainants, represented by advocate Mohd Sartaj Khan, submitted before RERA, that construction did not progress as expected. Therefore, they stopped further payments and asked for a refund.
However, the developer continued to send demand notices and later cancelled their allotment through a show-cause notice and termination letter.
They added that the developer offered them another unit and took an affidavit from them on July 18, 2020, on the assurance that a fresh agreement would be executed, but it was never issued.
The developer then treated the original allotment as cancelled and retained the entire deposited amount.
The developer denied these claims. It said the allotment was cancelled as the complainants defaulted on payments despite repeated reminders.
They also argued that the complainants voluntarily sought another unit and agreed to pay an additional ₹5 lakh, but later withdrew the cheque and did not return the original documents, preventing the relocation from going ahead.
The developer explained that the project timeline was extended to December 31, 2024, due to Covid-19 related force majeure conditions and that the forfeiture of earnest money was contractually permitted.
After reviewing submissions from both sides, RERA held that Suksha Developers could not forfeit more than 10% of the total sale price, as stated in the agreement. It also stated that as the relocation was incomplete, the builder had no basis to retain the full amount.
Thus, RERA ordered the developer to refund ₹24.88 lakh, including 10.85% annual interest from October 1, 2020. The amount will be recoverable as land revenue if unpaid within 90 days, and the unit will remain under lien until payment is completed.
