Malad builder told to pay back ₹20 lakh to two homebuyers

The Maharashtra Real Estate Regulatory Authority (MahaRera) recently ordered a builder to refund ₹20 lakh paid by two homebuyers as a booking amount for a flat,

The Maharashtra Real Estate Regulatory Authority (MahaRera) recently ordered a builder to refund ₹20 lakh paid by two homebuyers as a booking amount for a flat, four years ago.

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The complainants, Sumit and Ashutosh Mukherjee, had on July 1, 2016 booked a residential flat in Malad for ₹2.23 crore and made a payment of a token amount of ₹20 lakh to Rajsanket Realty Limited. However, despite cancelling the deal within 40 days — August 10, 2016 — the builder kept on delaying the refund claiming he would do so only after the said flat got sold.

The Mukherjees then approached MahaRera, which ruled that the builder must refund the entire amount to them.

According to Advocate Shilpa Nagori, who represented the complainants, the order is significant as “the order is very clear that builders can no longer keep the buyers’ amount after cancellation of the order and must refund it”.

The complaints contended that after cancelling the booking, they resorted to various means like emails, letters and even a legal notice asking the builder to refund their amount, all of which were neglected by the firm.

The firm, Rajsanket Realty, during the hearing expressed willingness to refund the amount but only when finding a new buyer for the said flat, and said that this would take time. The further added that they would refund the amount after 5% deduction. This was mentioned earlier on September 2, 2017 when the Mukherjees had given them a legal notice.

MahaRera, in its order, said that based on its September 2, 2017 submission, “There was sufficient time for the respondent to sell out the said flat to new buyer and refund the amount to the complainants as promised. However, due to such act of omission on the part of the respondent, the complainants were compelled to wait for refund for such an unreasonable period and they had to approach MahaRera.”

“In view of the aforesaid facts and circumstances of this case, MahaRera directs the respondent to refund the full amount paid by the complainants without any interest.”

Builders often exploit homebuyers by forfeiting or deducting a huge amount in cases of cancellation of bookings. The buyer, in order to avoid legal hassles, used to accept whatever amount was refunded to them.