H-RERA Orders Developer to Refund Rs. 5. 8 lakh to Homebuyer with 11% Interest

The Haryana Real Estate Regulatory Authority (H-Rera) has directed the developer of a Sector 103 residential project to refund Rs. 5.8 lakh to a homebuyer, along with 11% annual interest, for failing to fulfill its commitments. The order follows a petition filed by the buyer, Bharat and Poonam Gupta.

In April 2019, the Guptas booked a 2BHK flat in Mahira Homes, paying an initial Rs. 1.15 lakh.  

They received confirmation of allotment for flat number 703 in Tower G, with a basic sale price of Rs. 23.3 lakh.

The Guptas then paid an additional Rs. 4.7 lakh, bringing their total payment to Rs. 5.88 lakh, although the developer failed to provide a receipt for this second payment.

The Guptas requested a builder-buyer agreement to secure a home loan, but the developer refused, citing the lack of an environmental clearance certificate. Despite this, the developer continued to demand further payments from the buyer. The Guptas' home loan application with Punjab National Bank was also rejected. In January 2020, Mahira Homes unilaterally cancelled the flat booking.

The Guptas approached H-Rera in January of the following year, alleging that the developer refused to refund their payment. During hearings on January 17th and February 21st, 2024, H-Rera noted that the developer failed to submit any responses to the allegations, despite multiple directives to do so. Consequently, H-Rera ruled in favor of the homebuyer, ordering the refund with interest, holding the developer accountable for their unfulfilled commitments.

Furthermore, H-Rera's investigation revealed that the project had come under regulatory scrutiny. The developer's accounts were frozen and they were blacklisted in May 2022 due to several violations.