Aspen Heights Project: Understanding Property Refunds & Possession Delays

Welcome to the intriguing world of the Rajasthan Real Estate Regulatory Authority (RERA) and a case that has captured the attention of property buyers and developers alike. In this article, we delve into the details of a dispute between Mr. Satish Sharma, the complainant, and VVA Developers Private Limited, the respondent, revolving around the project "Aspen Heights" bearing registration No. RAJ/P/2017/123. RERA, as a crucial regulatory body, plays a pivotal role in safeguarding consumer rights and regulating real estate transactions in the state.

The aim of this article is to provide a comprehensive understanding of the case, highlighting the key parties involved, the property in question, and the legal implications surrounding the issues of non-execution of the agreement for sale and delays in project completion.

Background of the Case

The stage is set with the backdrop of the "Aspen Heights" project, a real estate venture with its registration details recorded as RAJ/P/2017/123. Mr. Satish Sharma, the complainant, was issued a provisional allotment letter on 15.04.2014, marking the commencement of his association with the project. A booking was made on 07.06.2013, with a partial payment of Rs. 5,46,762 out of the total consideration of Rs. 28,45,250.

The crux of the matter lies in the non-execution of the agreement for sale between the parties. Consequently, the complainant seeks a refund due to project delays, leading to a complex legal tangle that demands scrutiny.

Respondent's Response

The respondent, VVA Developers Private Limited, presents its reply to the allegations made by the complainant. The respondent states that the project was initially expected to be completed by 31.01.2021, and the authority granted an extension until 31.03.2023. Furthermore, the complainant's partial payment of Rs. 6,27,812 is acknowledged, but a demand notice for the outstanding amount of Rs. 16,95,288 was issued on 10.08.2020.

Intriguingly, the respondent obtained a partial completion certificate for Blocks A-1 and A-2 of the project on 20.03.2022, which adds a twist to the narrative.

Authority's Decision

The Rajasthan Real Estate Regulatory Authority carefully scrutinizes the case, taking into account the partial completion certificate for Blocks A-1 and A-2 of the project. This certificate reflects the completion of these blocks and has been made accessible on the Authority's web portal. A crucial point emerges - without an executed agreement for sale, the promoter had no legal right to issue the demand notice for payment, especially when over 25% of the consideration had already been paid.

The Authority's decision is also influenced by a significant directive from the Hon’ble Supreme Court in the case of IREO Grace Realtech Pvt. Ltd. Vs. Abhishek Khanna. The court directed that refunds should not be allowed for completed projects.

Delays and Possession Date

The case revolves around the issue of project delays, and both parties admit to the delay in completion. However, the provisional allotment letter does not specify a possession date, leading to uncertainties for both the complainant and the respondent. The projected possession date, as indicated during the project's registration, becomes a key factor in evaluating the delays.

Entitlement to Interest

As the project completion is delayed, the complainant seeks redressal by invoking Section 18 of the Act, which entitles him to seek interest. The applicable interest rate, as specified in Rule 17 of the Rajasthan Real Estate (Regulation and Development) Rules, 2017, plays a vital role in determining the financial implications of the delay.

Authority's Directives

The Rajasthan RERA sets forth crucial directives in addressing the case's complexities:

Taking Possession

The complainant is directed to take possession of the unit by paying the outstanding consideration. However, before doing so, a fresh demand notice will be raised, taking into account the accrued interest for the possession handover.

Accrued Interest Calculation

The method for calculating accrued interest is essential for both parties. The interest will be levied at the rate of 8.6% of the highest MCLR of SBI + 2% from the completion date (31.01.2021) until the possession offer is made.

Choice to Not Take Possession

The respondent has the right to deduct administrative charges, amounting to 10% of the deposit, if the complainant decides against taking possession. The remaining amount will be refunded, along with the interest accrued from 01.02.2021 (excluding the notified moratorium period).

Conclusion

In conclusion, the Rajasthan RERA case on property refund and possession delays sheds light on the intricate world of real estate transactions and consumer protection. The Authority's decision to allow interest but deny a refund for the completed project highlights the need for clear execution of agreements for sale to avoid legal complications. The case serves as a crucial reminder of the significance of RERA in safeguarding the interests of consumers in real estate dealings, promoting transparency, and ensuring accountability within the industry.

Note: The information provided in this article about Rajasthan Real Estate Regulatory Authority (RRERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances. The information provided in this article is based on the Comp. No. RAJ-RERA-C-2019-3105 before the Rajasthan Real Estate Regulatory Authority

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