Refund Turning Point allottees’ money with interest: Rera court to Vatika

The case pertains to the Turning Point project for which the developer obtained a licence from the Department of Town and Country Planning in 2013

The Haryana Real Estate Regulatory Authority (H-Rera) has ordered Vatika Limited to refund money to 28 allottees with interest at the prescribed rate for a pending project in Sector 88B.

In a statement, Vatika said it has invested approximately ₹168 crore in the project but due to ongoing work on the Dwarka Expressway, the project site is not accessible. (Representative image/HT Archive)

“Since the project has been abandoned by the promoter, the allottees are entitled to the refund of the amount paid by them against the allotment of their units, with interest at the prescribed rate of 10.25% 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,” stated the Rera order dated October 28.

The case pertains to the Turning Point project for which the developer obtained a licence from the Department of Town and Country Planning in 2013. Though the flats were to be offered for possession by 2025, there was no work progress at the site except for some digging work, the Rera court observed.

“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 remainder, if any, would be paid back to the allottees,” the court stated.

The court observed that the promoter did not file quarterly progress reports giving status of the work progress as required under the rules.

Dr KK Khandelwal, Rera chairman, said, “Such offences are unacceptable. The promoters cannot take allottees for granted after realising their hard earned money. Rera has to act as per law and ensure allottees’ money is safe and that they get compensation for their trouble.”

In a statement, Vatika said it has invested approximately ₹168 crore in the project but due to ongoing work on the Dwarka Expressway, the project site is not accessible. It said it has not raised instalments for the past few years because sector or internal roads have not been constructed by the Gurugram Metropolitan Development Authority. “The company has not only refunded but also reallocated clients to other projects with mutual consent and acceptance, and has voluntarily applied for deregistration of the project,” the statement said.