Builder delays completion, RERA directs repayment of homebuyers’ bank loan

According to a complaint filed by homebuyers, Deepak Mehta and Chandan Bala, they booked an apartment in Kilpauk with BBCL Developers (India) Pvt Ltd in 2016 and paid a total sum of Rs 5.37 crore. At the time of booking, the builder gave an undertaking to complete construction and hand over the flat by December 2018, with a grace period of six months. 

The complainants said they availed loan from HDFC Bank to purchase the flat and paid the builder, which had requested payment even before it was due in collusion with the bank, they added, and added: “In spite of this, the 1st respondent (builder) was unable to complete construction before the agreed time.” 

When the case came up for hearing, the builder argued that the application for completion certificate was submitted in 2017, before RERA Act came into force. Meanwhile, the bank denied the allegation of collusion with the builder and said the homebuyers defaulted in repaying the loan. 

After hearing both sides, adjudicating officer G Saravanan observed that completion certificate was obtained only in December 2020, after one and a half years after the promised date. “As per the version of the [bank], they disbursed Rs 5.17 crore in favour of the [builder] on behalf of the complainants. Therefore, whatever the amount the complainants are entitled under this order is directed to be paid to the [bank] towards satisfaction of the loan on account of complainants,” Saravanan said. 

Besides this, the builder was also directed to pay Rs 1.50 lakh to buyers.