Decoding the RERA Case: Delayed Possession and Promoter's Obligations in Rajasthan Real Estate

In the bustling world of India's real estate sector, the Real Estate Regulatory Authority (RERA) plays a crucial role in safeguarding the interests of buyers and regulating the activities of promoters. One such intriguing case that came before the Rajasthan RERA involved Mr. Rahul Arora and FS Housing Private Limited, a prominent housing promoter.

At the heart of the matter were issues relating to delayed possession of flats and non-registration of earlier agreements. As we delve deeper into this case, we will explore the facts, legal intricacies, settlement attempts, and the Authority's decision, unraveling the complexities surrounding the matter.

Understanding the Facts

The case revolved around the project "The Crest," boasting Registration No. RAJ/P/2017/056. Mr. Rahul Arora, the complainant, had booked units in this project and was eagerly awaiting possession. The specifics were as follows:

1. Complainant: Mr. Rahul Arora
2. Respondent: FS Housing Private Limited
3. Complaint Numbers: RAJ-RERA-C-N-2022-5264 & RAJ-RERA-C-N-2022-5268
4. Units: 1102 and 1202
5. Consideration: Rs. 1,86,88,976/-
6. Paid Amount: Rs. 1.63 Crore and Rs. 1,64,17,000/-
7. Dates of Agreements: 19.11.2018 and 22.11.2018
8. Subsequent Agreement: 10.11.2021
9. Expected Delivery: 31.12.2021

Legal Analysis

Before we dive into the legalities, let's understand the obligations imposed by RERA on promoters. According to RERA, promoters must register agreements for sale with the competent authority. In this case, the respondent promoter stated that the complainant failed to register the earlier agreement, leading to the execution of subsequent agreements. However, the complainant had already paid more than 10% of the consideration before the initial agreements were executed.

The completion certificate, obtained on 01.06.2021, signified that the project was already completed before the expected delivery date. Despite this, the promoter failed to offer possession to the complainant, raising questions about their compliance with statutory provisions.

Settlement Attempts

Both parties engaged in settlement discussions, and a draft agreement was shared by the promoter with Mr. Rahul Arora. However, no concrete settlement deed materialized. The complainant expressed doubts about a resolution while claiming that the promoter barred entry to the project premises. Consequently, the case proceeded to be adjudicated.

Authority's Decision

After careful examination, the Authority decided to combine and dispose of both complaints through a common order. The completion certificate's relevance became pivotal, pointing to the promoter's obligation to offer possession on time. The non-registration of earlier agreements further bolstered the complainant's case.

Relief and Penalties

The Authority granted relief to Mr. Rahul Arora, directing the promoter to hand over possession and pay interest at 8.6% of the highest MCLR of SBI+2% from 01.01.2022 until actual delivery. The promoter was allowed to adjust accrued interest against the deposits. Additionally, the complainant was given 30 days to deposit outstanding dues after receiving a demand letter. In light of violations under Section 13 of the Act, the promoter faced a penalty of Rs. 2 lakh.

Implications and Takeaways

The Authority's decision sends a strong message to the real estate industry about compliance with RERA regulations. It underscores the significance of timely possession and adherence to statutory requirements. For buyers and promoters alike, the case highlights the need for meticulous registration and fulfillment of obligations.

Conclusion

As we conclude our exploration of the RERA case involving Mr. Rahul Arora and FS Housing Private Limited, it becomes evident that RERA's regulations play a pivotal role in shaping the real estate landscape. Understanding and adhering to these regulations are crucial for all stakeholders, ensuring a transparent and reliable real estate ecosystem in Rajasthan and beyond.

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-2022-5264 and Comp. No. RAJ-RERA-C-N-2022-5268 before the Rajasthan Real Estate Regulatory Authority

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