Complainants Granted Refund in the Om Sky Rise Developers Pvt. Ltd. Case

In a recent ruling by the Rajasthan Real Estate Regulatory Authority (RERA), a significant decision was made in the case of Shanta Moolchandani, through her legal heirs Anil Moolchandani, Harish Moolchandani, and Pooja Vishnu Khatri, as complainants against Om Sky Rise Developers Pvt. Ltd., the respondent. This case, registered under the complaint number RAJ-RERA-C-N-2021-4641, sheds light on the non-fulfillment of promises made by the developer in relation to a housing project named "Nand Gaon-II" under the Chief Minister Housing Scheme, 2015. The ruling, delivered by Honorable Shri Salvinder Singh Sohata, Member of the Rajasthan RERA, emphasizes the complainants' right to seek a refund due to the promoter's default.

Background of the Case:

Shanta Moolchandani had lodged a complaint under Section 31 of the Real Estate (Regulation and Development) Act, 2016 (hereinafter referred to as 'the Act'), stating that a flat, specifically Flat No. A-12, had been booked in the aforementioned project. The registration number for this project was RAJ/P/2017/561. An amount of Rs. 1.05 lakh was deposited in two installments, and an allotment letter was issued on 01.01.2018 in favor of Shanta Moolchandani, with Sunita Moolchandani being the co-allottee. However, Sunita Moolchandani was not initially included as a party in the proceedings but later joined as a complainant. Sadly, Shanta Moolchandani passed away during the proceedings, and her legal heirs were subsequently involved in the case.

Allegations and Demands:

The complainants alleged that the promoter, Om Sky Rise Developers Pvt. Ltd., failed to fulfill the promises made during the booking of the unit. They sent several detailed emails highlighting the grounds of dissatisfaction and demanding a refund due to the non-fulfillment of commitments. Despite these communications, the promoter did not initiate any refund process, leading the complainants to file an application before the Rajasthan RERA seeking a refund of the deposited amount.

Proceedings and Ruling:

Despite being served through their online dashboard, none of the representatives of the promoter appeared before the Authority. As a result, the complainant's representative, Mr. Anil Moolchandani, presented the case on behalf of the complainants. The records were thoroughly examined, and it was established that an allotment had been made on 01.01.2018 for the disputed unit, with a consideration of Rs. 10.50 lakh. The complainant had already paid Rs. 1.05 lakh to the promoter as per a receipt dated 13.05.2017.

It was revealed that the promoter had informed the allottees on 16.11.2016 about arranging a loan facility for the purchase of the unit. However, the complainant alleged that the promoter failed to fulfill this commitment, and despite the advance payment, the construction activities were not initiated. Consequently, the complainants sought a refund of the deposited amount.

Relying on the provisions of the Act, specifically Section 12 read with Section 94, the Honorable Member of the Rajasthan RERA determined that the complainants were entitled to seek a refund due to the promoter's default in fulfilling their obligations. In this case, as an agreement for sale was not available, the complainants were eligible for a refund. The deposited amount was considered as advance money, thereby ruling out any deduction of administrative charges by the promoter. However, since no agreement for sale had been executed, the ruling concluded that interest could not be justified for the complainants.

Conclusion:

The Rajasthan RERA's ruling in the case of Shanta Moolchandani, represented by her legal heirs Anil Moolchandani, Harish Moolchandani, and Pooja Vishnu Khatri, against Om Sky Rise Developers Pvt. Ltd., highlights the importance of protecting the rights of homebuyers and ensuring that developers fulfill their commitments. The ruling emphasizes the complainants' entitlement to a refund of the deposited amount due to the promoter's default in completing the construction activities. The decision aligns with the objective of the Real Estate (Regulation and Development) Act, 2016, in safeguarding the interests of homebuyers and promoting transparency in the real estate sector.

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-N-2021-4641  before the Rajasthan Real Estate Regulatory Authority

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