Struggle for Accountability: Chhagan Lal Phoolwaria's Fight Against Advance India Builders and Promoters Pvt. Ltd. in the Advance Saaga Castle Case

In a significant legal battle between Chhagan Lal Phoolwaria and Advance India Builders and Promoters Pvt. Ltd., the Rajasthan Real Estate Regulatory Authority (RAJ-RERA) recently rendered an order in Complaint No: RAJ-RERA-C-2020-3924.

The case revolves around Unit No: S-02 and Kiosk 02 of the renowned "Advance Saaga Castle" project, bearing registration No: RAJ/P/2017/521. Let us delve into the details of this long-standing dispute, the court's orders, and the subsequent proceedings.

Chhagan Lal Phoolwaria, acting as the Complainant-Decree holder, lodged a complaint against Advance India Builders and Promoters Pvt. Ltd., the Respondent. The central issue pertained to non-compliance with the directives outlined in a previous order issued by the RAJ-RERA.

Dated 17.02.2023, the recent order shed light on the previous directions provided by the Authority. According to the order, the Respondent was required to pay interest on the deposit for the respective units from 01.01.2018 until the actual delivery of possession.

The interest was to be calculated at a rate of 9.3% per annum, excluding the moratorium period notified by the Authority. The payment was to be made within 45 days. Furthermore, the Promoter was granted permission to adjust the taxation amount against the interest accrued on the deposit.

Despite the passage of more than a year, the Respondent failed to comply with the Authority's directions. Consequently, the Complainant-Decree holder filed an Execution application, drawing attention to the prolonged non-compliance. Acknowledging the gravity of the situation, the Director of the Company was summoned to appear before the Authority.

On 02.02.2023, Mr. Ajay Yadav, the Director of the Promoter, appeared before the Authority and reported ongoing settlement discussions. However, subsequent consultations between the parties failed to yield any progress or conclusive agreements. It became evident that a settlement between the parties was unlikely.

Given the persistent non-compliance and lack of effort in seeking an extension for the project's validity, the RAJ-RERA found it appropriate to refer the case for initiating recovery proceedings.

As per the provisions of section 40(1) of the Act, the Authority directed the concerned District Collector to initiate the recovery process. The Registry of the Authority was directed to issue a Recovery Certificate for the interest payable to the Decree-holder, paving the way for the subsequent recovery proceedings.

The case of Chhagan Lal Phoolwaria versus Advance India Builders and Promoters Pvt. Ltd. highlights the challenges faced by buyers in the real estate sector and the significance of regulatory authorities like RAJ-RERA.

Despite the initial order requiring the payment of interest, the non-compliance by the Promoter led to prolonged legal proceedings. The referral for recovery proceedings emphasizes the commitment of the Authority to ensure justice and fair treatment for the aggrieved parties.

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-2020-3924 before the Rajasthan Real Estate Regulatory Authority

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