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2025 Supreme(Online)(RERA) 1906
BEFORE THE TAMIL NADU REAL ESTATE REGULATORY AUTHORITY
Dr.L. Subramanian, I.A.S., (Retd) Hon’ble Member, M.Krishnamoorthy, Hon’ble Member
K.S. Aruna Vasumathi – Appellant
Versus
M/s. Alliance Group (Alliance Business Parks Pvt. Ltd.) – Respondent
RCP No. 62 of 2023
For the Appellants/Petitioners: M/s. B.K. Girish Neelakantan
For the Respondents: Mr. A. Joseph Dorairaj
The authority ruled that retaining cancellation charges due to project delays violates the Real Estate Act, entitling the complainant to a full refund.
Headnote:(A) Real Estate (Regulation and Development) Act, 2016 - Section 18(1) - Refund of cancellation charges - Complainant booked a flat and paid an advance but withdrew due to delay in possession - Respondent retains part of amount as cancellation charges, which court finds unlawful under act - Complainant entitled to full refund of withheld amount with interest. (Paras 9, 12, 18)
(B) Complaint Process - The authority recognizes failure of the respondent to fulfill terms and acknowledges the right of the complainant to withdraw and seek a full refund due to the delay caused. (Paras 17, 20)
Facts of the case:
Complainant booked a flat and paid Rs.2,50,000/-; respondent failed to provide clarity on project timeline and delayed possession, leading to booking cancellation. The complainant sought a refund of Rs.50,000/-, which was withheld.
Findings of Court:
The court determined that the respondent unlawfully retained Rs.50,000/- as the delay was the respondent's fault, infringing the act. Interest was to be paid at the current SBI rate.
Issues: The main issues were whether the complainant was entitled to the refund of Rs.50,000/- and any additional reliefs.
Ratio Decidendi: The court ruled that due to the respondent's failure to meet the agreement's terms, claiming cancellation charges was unlawful under Section 18(1) of the act.
Result: The respondent is directed to refund Rs.50,000/- with interest and pay Rs.25,000/- as costs.
ORDER
This complaint is filed for refund of Rs.50,000/- with an interest of 24% per annum to be paid by the respondent with costs.
Averments of the Complaint in brief:
The respondent advertised about its project “Augustus Alliance Galleria’ Residences in Pallavaram. Attracted by that, the complainant approached the respondent on 14.03.2018 and 19.03.2018 for purchasing Flat No.1210. The total cost of which was arrived at Rs.42,17,100/-. The complainant paid Rs.10,000/- as booking advance and obtained a receipt on 21.03.2018. In March 2018 itself, the complainant paid Rs.2,40,000/-. When a draft agreement for sale and construction were given to her, she raised queries about planning approval for the project as it was mentioned in the draft Sale Agreement that CMDA revised approval plan is yet to be received. Since there was no response from the Respondent, the Complainant again sent an email on 03.05.2018 requesting certain clarifications from the respondent and the respondent replied on the same day stating that her queries were forwarded to the concerned team for clarification. Since the Complainant was not given clear reply for the sanctions, authorisation, delivery of possession, date of registration of the agreements, she raised her objections about the handing over of the unit by July 2020 which was in fact assured to her at the time of booking the flat that possession will be given by December 2018. Hence she sent an email to the respondent on 18.05.2018 stating that she is cancelling the booking and asked for refund of her money. Then she received various mails; but finally received a cheque for Rs.2,00,000/- only as refund. Balance Rs.50,000/- was withheld by the respondent as cancellation fee for the never constructed imaginary flat. Hence this complaint is filed for refund of Rs.50,000/- with interest of 24% per annum and costs.
Averments the Respondent in brief:
The respondent has denied the complaint except those that are specifically admitted. The respondent developed its project “Augustus Alliance Galleria’ Residences; obtained approvals from the appropriate authorities for construction and development of the project. RERA registration was obtained and renewed also. It is true that the complainant booked Flat No.1210 and paid Rs.2,50,000/- towards initial payment but the respondent never assured to complete and handover the unit by 2018. When the respondent sent draft agreements to the complainant, she did not return it or produce the same before the Forum for the reasons best known to her. She was well aware about the handing over period even at the time of booking the flat. As per Clause 5 of the Booking Form, in case of cancelling the booking, Rs.50,000/- would be deducted as cancellation charges and the balance will be refunded. The respondent submitted that on these grounds, the complaint is to be dismissed.
The complainant side has filed the proof affidavit of CW1 with Ex.A1 to A26. The respondent has recorded the proof affidavit of RW1 and no documents are produced. Both the sides have filed their written arguments also.
From perusal of all the above narrated details, the following points are to be decided for disposing off this complaint:
(i) Whether the complainant is entitled for refund of Rs.50,000/- with due interest?
(ii) Any other reliefs?
Answer to point (i):
The fact that the project “Augustus Alliance Galleria’ Residences is being launched in Pallavaram. The complainant’s booking of Flat No.1210, her payment of Rs.2,50,000/- towards the total cost of Rs.42,17,100/- are all admitted by both the sides. The agreements for sale and construction are not placed before this Forum to ascertain other facts about the completion and handing over undertakings. At the same time, the emails sent by the complainant from 20.03.2018 to 15.11.2018 speak volumes of her requests and clarifications including her intention to cancel the booking as the respondent has changed the handing over date to July 2020 from the earlier pro
