RERA's Verdict: Siddha Infra Projects vs. Saroj Kiran Mandawaria

In this article, we will delve into a significant case involving Siddha Infra Projects Pvt. Ltd. and Saroj Kiran Mandawaria that has come before the Rajasthan Real Estate Regulatory Authority (RERA). RERA plays a crucial role in regulating the real estate sector in Rajasthan, ensuring transparency and protecting the interests of buyers and investors. Let's explore the details of the case and the implications it holds.

Background: The Siddha Aangan Project

At the heart of the dispute lies the Siddha Aangan project located on Ajmer Road in Jaipur. Saroj Kiran Mandawaria had initially booked a flat in block "Baya" back in May 2016. The booking involved a construction-linked payment plan and a tripartite agreement between the respondent, complainant, and HDFC bank. However, due to unsatisfactory progress in block "Baya," the respondent offered the complainant an alternative by shifting them to block "Mayur."

The Complaint: Delayed Possession and Payment Issues

Saroj Kiran Mandawaria expressed their dissatisfaction with the construction progress and raised concerns about the promised completion dates. The complainant had made substantial payments towards the new flat in block "Mayur," expecting possession by a specific deadline. However, according to the complainant, the project's completion was far from satisfactory, with the respondent admitting that only 45 percent of the project was complete as per their submitted QPRs (Quarterly Project Reports) to the Authority. As a result, the complainant requested a refund, along with interest and compensation.

The Respondent's Position: Settlement Talks and Construction Delays

The respondent, Siddha Infra Projects Pvt. Ltd., acknowledged the basic facts presented by the complainant. However, they claimed that the amount paid to the complainant was compensation rather than pre-EMIs, disputing the complainant's assertion. The respondent argued that ongoing settlement talks were underway and cited construction delays due to the impact of the COVID-19 pandemic.

Analysis by the Rajasthan RERA: Examining the Facts

The Rajasthan RERA carefully considered the arguments presented by both parties. In their analysis, they referred to a crucial judgment by the Hon'ble Supreme Court in the case of Newtech Promoters and Developers Pvt. Ltd. Vs. State of Uttar Pradesh and others. This judgment highlighted the unconditional right of allottees to seek a refund if the project is not delivered on time. The RERA concluded that the project in question was incomplete, and possession was not imminent.

The RERA's Order: Refund, Interest, and Compliance

Based on their analysis, the Rajasthan RERA issued an order to Siddha Infra Projects Pvt. Ltd. The respondent was directed to refund the entire amount paid by Saroj Kiran Mandawaria, inclusive of interest. The interest was calculated based on the prescribed rate in the Rajasthan Real Estate (Regulation & Development) Rules, 2017. The order allowed for the adjustment of any amounts already paid by the respondent to the complainant. The respondent was given a specific timeframe to comply with the order and submit a compliance report to the Authority. Failure to comply within the stipulated timeframe would empower the complainant to recover the sum through execution of the decree. Additionally, the complainant had the option to seek compensation from the Adjudicating Officer under the Act.

Conclusion: Upholding the Rights of Homebuyers

In conclusion, this case serves as a significant precedent for homebuyers and investors in the real estate sector. The judgment by the Rajasthan RERA reinforces the importance of timely completion and possession of real estate projects. It emphasizes the need for transparency and accountability in the industry to safeguard the interests of buyers. Through the diligent efforts of regulatory bodies like RERA, a fair and equitable environment for real estate transactions can be established.

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-2022-5282 before the Rajasthan Real Estate Regulatory Authority

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