Developers must make good on promise of assured returns, timely delivery of flats: HRERA

Hearing petitions filed by homebuyers against 26 developers, the Gurugram bench of the Haryana Real Estate Regulatory Authority (HRERA) on Wednesday held that the assured returns promised by developers, part of the builder-buyer agreements, in terms of paying returns and handing over booked properties, must be made good

Hearing petitions filed by homebuyers against 26 developers, the Gurugram bench of the Haryana Real Estate Regulatory Authority (HRERA) on Wednesday held that the assured returns promised by developers, part of the builder-buyer agreements, in terms of paying returns and handing over booked properties, must be made good.

In its judgment, the bench headed by Dr KK Khandelwal observed that in disputes pertaining to assured return schemes, money was taken by the promoters/developers/builders as deposit in advance against allotment of immovable property and the possession was to be offered to the allottee within a certain period, as mutually agreed between them, as per the builder-buyer agreement. (HT Archive)

In its judgment, the bench headed by Dr KK Khandelwal observed that in disputes pertaining to assured return schemes, money was taken by the promoters/developers/builders as deposit in advance against allotment of immovable property and the possession was to be offered to the allottee within a certain period, as mutually agreed between them, as per the builder-buyer agreement. “By taking sale consideration by way of advance, the builder promised certain amount by way of assured returns for a certain period, therefore on the failure on part of the builder to fulfil his commitment, the allottee has a right to approach the authority for redressal of his grievance by way of filing a complaint,’ a copy of the judgement, accessed by HT, stated.

Officials of HRERA said that the issues pertained to stuck housing projects, as homebuyers are neither getting assured returns on their investments nor the delivery of properties, and that over 100 complaints in this regard have been filed.

Geeta Rathi Singh, legal officer, HRERA, said that in most cases, the developers took 100% of the property cost at the time of booking, assuring that a minimum amount is paid to them towards their rental costs and also timely delivery of properties. “These schemes appear very lucrative to buyers as they hope to make good income but it has come to the notice of HRERA that a large number of buyers are neither getting the promised rent nor the promised property,” she said.

Singh said that in view of the 26 complaints of similar nature listed on Wednesday, the HRERA bench observed that any agreement or memorandum of association pertaining to assured returns would be considered as part of builder-buyer agreement.

The bench further observed that several retail buyers have fallen victim to such schemes and failed to get the property, leave aside the assured returns, and ended up as financial creditors, struggling to recover their money from the promoter/developer. “This judgement will ensure delivery of justice to the aggrieved allottees who have been robbed crores of hard-earned money by the errant promoters/developers/builders,” the bench observed.