Case of Fraudulent Real Estate Transaction: Raj Kumar Jain vs. Geeta Construction

Introduction

In a recent case filed with the Rajasthan Real Estate Regulatory Authority (RERA), a shocking instance of fraudulent real estate practices came to light. Raj Kumar Jain, the complainant, accused Geeta Construction, the respondent, of deceitfully selling a property that had already been allocated to him. The case sheds light on the challenges faced by buyers in the real estate sector and the importance of regulatory authorities in ensuring justice.

Case Details

Complaint No.: RAJ-RERA-C-2020-3402

Parties Involved:

• Complainant: Raj Kumar Jain
• Respondent: Geeta Construction

Project Name: Eden Heights

Background

Raj Kumar Jain, represented by Advocate Rishi Raj Maheshwari, filed a complaint against Geeta Construction for their involvement in the "Eden Heights" project. According to the complainant, he was one of the vendors for Geeta Construction, and in return for his labor payment, he was promised flat No.102. The total cost of the flat was Rs. 35.75 lakh, which was adjusted against the labor cost through a mutual agreement.

Fraudulent Actions

As per the agreement dated 14.01.2014, Geeta Construction acknowledged receiving the entire amount of Rs. 35.75 lakh from Raj Kumar Jain. The agreement also stated that possession of the flat would be handed over within 36 months from the execution date, i.e., by 14.01.2017. However, despite the passage of six years, the complainant has not received possession of the promised flat.

Shockingly, Raj Kumar Jain discovered that Geeta Construction had already sold flat No.102 to a third party, Chandra Prakash Doot, on 24.08.2018. This act not only defrauded the complainant but also caused him significant financial losses and mental anguish.

Legal Proceedings

The case was listed for hearings on multiple occasions, and despite proper summons, the respondent failed to appear before the Rajasthan RERA. Their continuous absence led the court to decide to hear the matter ex-parte, giving weight to the complainant's claims.

During the proceedings, Advocate Rishi Raj Maheshwari presented the agreement, clearly indicating Geeta Construction's receipt of the full payment from Raj Kumar Jain. The respondent's failure to fulfill their obligation to provide possession of the flat within the agreed timeline further validated the complainant's claims.

Court Order

In a significant decision, Shri Shailendra Agarwal, the Hon'ble Member of the Rajasthan RERA, directed Geeta Construction to refund the entire amount of Rs. 35.75 lakh to Raj Kumar Jain. The refund was to include interest at the rate prescribed in the Rajasthan Real Estate (Regulation & Development) Rules, 2017, specifically the SBI highest MCLR + 2% rate, which currently amounts to 9.30%. The interest was calculated from the date of the agreement, i.e., 14.01.2014, considering that the complainant had already deposited the entire sale consideration on that day itself.

The court ordered the respondent to comply with the refund directive within 45 days from the date of the order and submit a compliance report to the Rajasthan RERA within 15 days thereafter. Failure to comply within the stipulated period empowers the complainant to recover the specified amount, along with interest, from the respondent's assets through the execution of the court's decree, as per section 40(1) of the Act and the Rules.

For compensation, the court advised Raj Kumar Jain to approach the Adjudicating Officer under the Act, providing him with further recourse in seeking appropriate redress for the financial losses and mental agony caused by the fraudulent actions of Geeta Construction.

Conclusion

The case of Raj Kumar Jain vs. Geeta Construction serves as a stark reminder of the challenges faced by buyers in the real estate sector. The court's decision to order a refund, along with interest, reinforces the importance of regulatory authorities like the Rajasthan RERA in ensuring justice for aggrieved parties. It highlights the need for transparency, accountability, and adherence to agreed-upon timelines in real estate transactions.

Instances of fraudulent practices in the real estate industry can cause significant financial harm and mental distress to buyers. This case emphasizes the significance of thorough due diligence and the importance of legal safeguards to protect the interests of buyers. By holding errant developers accountable, regulatory bodies play a crucial role in maintaining the integrity and trustworthiness of the real estate market.

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 Complaint No. RAJ-RERA-C-2020-3402 before the Rajasthan Real Estate Regulatory Authority

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