Complaint Filed Against Udayraj Palace Pvt. Ltd. for Delayed Possession: Rajasthan RERA Case

In a significant case before the Rajasthan Real Estate Regulatory Authority (RERA), Ms. Priti Bhatia has filed a complaint against Udayraj Palace Pvt. Ltd., alleging a breach of agreement for delayed possession of Unit No: 418 in the project "UDAYRAJ." The complaint was filed under Section 31 of the RERA Act, with the case number RAJ-RERA-C-N-2022-5569.

The case involves an agreement for sale executed on 30.10.2017, with an expected possession delivery in March 2021, including a grace period of six months. The Complainant has paid Rs. 16.38 lakh out of the total consideration of Rs. 18.00 lakh but has not received possession within the stipulated timeframe. This article provides a detailed account of the case and the subsequent order issued by Hon’ble Shri Salvinder Singh Sohata, Member of the Rajasthan RERA.

The Background of the Complaint:

Ms. Priti Bhatia filed the complaint against Udayraj Palace Pvt. Ltd., seeking possession of Unit No: 418 in the "UDAYRAJ" project, which was registered under No: RAJ/P/2017/304. The agreement for sale was executed on 30.10.2017, with a promised possession date by March 2021, including a six-month grace period. The Complainant had deposited Rs. 16.38 lakh out of the total consideration amount of Rs. 18.00 lakh, but the Promoter failed to hand over the possession as per the agreed timeline.

Case Number: RAJ-RERA-C-N-2022-5569

Complainant: Ms. Priti Bhatia

Respondent: Udayraj Palace Pvt. Ltd.

Date of Order: 16.02.2023

Hon'ble Member: Shri Salvinder Singh Sohata

Notice and Absence of Response:

Upon filing the complaint, the Promoter, Udayraj Palace Pvt. Ltd., was served with notices on 18.08.2022 and 20.10.2022, requesting a reply to the complaint. However, the Promoter failed to submit a response within the specified period mentioned in the notice. Consequently, a notice dated 01.12.2022 was sent through the Promoter's online Dashboard, fixing the case for a hearing before the Rajasthan RERA Authority.

Adjudication and Hearing:

Despite being served notice through the online Dashboard, none of the representatives from Udayraj Palace Pvt. Ltd. appeared before the Authority. As a result, the Authority decided to adjudicate the matter by invoking the power empowered under Rule 35(2)(j) of the Rajasthan RERA Rules, 2017. The Complainant, represented by Advocate Shruti Rai and Advocate Samkit Jain, was given a chance to present their case and was heard at length.

Order of the Rajasthan RERA:

After careful consideration of the arguments presented by the Complainant and examination of the available records, Hon’ble Shri Salvinder Singh Sohata, Member of the Rajasthan RERA, issued the order on 16.02.2023.

Decision and Relief Granted:

The Authority observed that the "UDAYRAJ" project was not completed yet, and the Promoter had already sought an extension for completion, valid until 30.09.2023. The Complainant, however, insisted on receiving possession of the unit without amending the relief sought through the complaint. The Authority, taking this into account, directed the Promoter to pay interest at the rate of 8.6% (highest MCLR + 2%) from 01.04.2021 until the actual delivery of the unit to the Complainant.

Possession and Outstanding Consideration:

The Authority directed the Promoter to hand over possession of the unit to the Complainant within the validity period of registration. If the amount of accrued interest exceeds the outstanding consideration, the Promoter is required to pay the excess amount to the Complainant by the 10th of every calendar month.

Conclusion:

The case filed by Ms. Priti Bhatia against Udayraj Palace Pvt. Ltd. highlights the issue of delayed possession in the real estate sector. Despite the extension granted by the Authority for project completion, the Promoter failed to meet the agreed-upon possession date. The Rajasthan RERA, considering the circumstances, ruled in favor of the Complainant, directing the Promoter to pay interest and deliver possession within the registration's validity period. This case emphasizes the importance of timely delivery in real estate projects and the role of regulatory authorities in ensuring justice for homebuyers.

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-N-2022-5569 before the Rajasthan Real Estate Regulatory Authority

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