RERA orders refund as builder fails to hand over apartment

The homebuyer, Y Ravishankar, had filed a complaint with the TNRERA citing that Marg Properties Ltd failed to hand over an apartment being built in Kalavakkam village near Tiruporur. He had paid Rs 42.66 lakh after which the builder assured to deliver the flat in 2013. However, the builder delayed the construction, leading to expiration of the planning approval and the authorities sealed the entire project, forcing Ravishankar to seek refund. On the other hand, the builder contended that the construction was still on progress and not abandoned. The firm also cited a pending case in consumer forum and sought the dismissal of the petition.

While maintaining the complaint, adjudicating officer G Saravanan observed that the complainant was entitled for refund of the amount paid by him towards the purchase of the flat as per the terms of the agreement. “The complainant is entitled for refund of Rs 42.66 lakh with interest. Towards the cost of registration of UDS and loan processing fee, sum of Rs 67,700 is fixed and towards litigation expenses, a sum of Rs 20,000 is fixed,” Saravanan said in his judgment.