Sheela Sadhwani vs. Shivshakti Realhome Pvt. Ltd.: Seeking Justice for Delayed Possession

When it comes to safeguarding the interests of homebuyers and ensuring the timely delivery of properties, the Rajasthan Real Estate Regulatory Authority (RAJ RERA) plays a crucial role. Under the Real Estate (Regulation and Development) Act, 2016 (RERA Act), the authority regulates and oversees real estate projects in Rajasthan, ensuring transparency and accountability.

One such case that highlights the importance of RAJ RERA involves Sheela Sadhwani and Shivshakti Realhome Pvt. Ltd. In this case, Sheela Sadhwani has filed a complaint against the developer, alleging a delay in the possession of her booked flat in the "Shivraj Residency" project.

To fully grasp the circumstances surrounding this case, it is essential to delve into the background, understand the complainant's allegations, examine the legal proceedings, and explore the order and relief granted by the authority.

Background of the Case

The "Shivraj Residency" project, with its registration number RAJ/P/2017/015, serves as the backdrop for this dispute. Sheela Sadhwani had booked Flat No. 802 Wing D in the project, agreeing to the terms and conditions outlined in the agreement for sale. The agreement, signed on 22nd April 2019, specified a delivery date of 31st December 2020 for the possession of the unit.

Unfortunately, the developer, Shivshakti Realhome Pvt. Ltd., failed to meet the agreed-upon delivery date, prompting Sheela Sadhwani to approach the Rajasthan Real Estate Regulatory Authority with her grievances.

Complainant's Allegations

According to Sheela Sadhwani's complaint, she had already paid Rs. 32.90 lakh out of the total sale consideration/unit cost of Rs. 35.30 lakh to the developer. She alleges that despite her substantial payment, the developer did not fulfill their obligation to hand over the unit within the stipulated timeframe.

In light of the developer's failure to meet the agreed-upon terms, Sheela Sadhwani seeks various reliefs:

Refund of Deposited Amount with Interest: Sheela Sadhwani requests a refund of the entire amount of Rs. 32,90,000/- along with interest at the rate of 18% per annum, calculated from the date of payment.

Compensation for Litigation Expenses: Sheela Sadhwani seeks compensation of Rs. 10,00,000/- for the litigation expenses incurred during the dispute.

Breach of Agreement and RERA Act Provisions: Sheela Sadhwani alleges that the developer has breached the terms and conditions of the Agreement to Sale, as well as the provisions of the RERA Act. She urges the authority to impose heavy costs on the respondent for these violations.

Prevention of Illegal Demands: Sheela Sadhwani seeks an order to restrain the developer from raising any further illegal demands until the final resolution of the dispute.

Legal Proceedings

Upon receiving the complaint, the Rajasthan Real Estate Regulatory Authority issued a notice to the developer, Shivshakti Realhome Pvt. Ltd., requesting a reply within 30 days. Unfortunately, the developer failed to respond within the specified timeframe.

Consequently, an ex-parte hearing was conducted, allowing Sheela Sadhwani's advocate to present her case. The authority examined the available records, including the agreement clause that mentioned the delivery date of the unit.

It is worth noting that during the project's registration, the developer had informed the authority of the 31st December 2020 completion date. However, an extension until 31st December 2022 was later sought and approved. As the project now falls under the lapsed category, it implies that the developer has ceased operations, granting the complainant the right to seek a refund of the deposited amount.

Order and Relief Granted

After careful consideration of the facts and circumstances, the Rajasthan Real Estate Regulatory Authority issued an order in favor of Sheela Sadhwani. The authority directed the developer, Shivshakti Realhome Pvt. Ltd., to refund the deposited amount of Rs. 32,90,000/- to Sheela Sadhwani. Additionally, the developer was instructed to pay interest at the rate of 8.6% per annum, calculated from 1st January 2021 (excluding any moratorium notified by the authority).

To ensure compliance, the authority set a deadline of 45 days from the uploading of the order copy on the Authority's website for the refund to be made. Failure to comply within the specified period would result in the initiation of recovery proceedings under Section 40 of the RERA Act.

It is important to note that while the complainant's request for compensation falls outside the jurisdiction of the authority, Sheela Sadhwani has been advised to approach the appropriate authority for this matter.

Conclusion

The case between Sheela Sadhwani and Shivshakti Realhome Pvt. Ltd. sheds light on the significance of the Rajasthan Real Estate Regulatory Authority and the RERA Act in protecting the rights of homebuyers. The authority's intervention ensures that developers adhere to agreed-upon timelines and fulfill their obligations.

Timely possession of properties is of paramount importance, and any delays or breaches of agreements can cause significant hardships for buyers. Through its order, the Rajasthan Real Estate Regulatory Authority has emphasized the need for compliance with the RERA Act and the timely delivery of properties.

Buyers like Sheela Sadhwani can find solace in the recourse provided by the authority, which seeks to address their grievances and provide appropriate relief. The case serves as a reminder to all stakeholders in the real estate sector to honor their commitments and maintain the trust of 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 Comp. No. RAJ-RERA-C-N-2022-5636 before the Rajasthan Real Estate Regulatory Authority

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