Failed to deliver house, Gurugram RERA orders promoter to refund full amount with interest

The Real Estate Regulatory Authority, Gurugram directed the promoter of a housing project ILD Grand at sector 37C to refund the amount of Rs 72 lakh with interest to the allottee, who wants to withdraw from the incomplete project.

The project was launched in 2008-09 but it is still incomplete.

According to a statement issued by RERA Gurugram, directions to refund the amount were issued by the RERA court on January 6, however, the statement in the regard by the authority was issued on January 18.

“City-based promoter of a real estate project ILD Grand at Sector 37C will have to refund the full amount to its allottee. The Authority directs the promoter to return the amount received of Rs 72,09,911 with interest at the rate prescribed under the Rule 15 of the Haryana real estate (regulation and development) Rules 2017,” the statement said on January 18 quoting the order.

“Arguments heard, refund is allowed and a complaint now stands disposed of,” the court said in the order.

There was no immediate response available from the developer.

The Authority also said that the promoter is responsible for all obligations, responsibilities, and functions under the provisions of the Act.

The order further said that the promoter apparently has “failed to complete or was unable to give possession” of the unit in accordance with the terms of the agreement for sale.

“Accordingly, the promoter is fully liable to the allottee, as the allottee wishes to withdraw from the project, to return the amount received by him in respect of the unit with interest at such rate as may be prescribed,” said the order.

During the argument, the counsel for the respondent confirmed that the occupation certificate of the project is not yet applied as the construction work is not complete.

The builder has recently been granted financial assistance under the SWAMIH fund to complete the project by December 2023, the statement said.

“But the allottee is not interested in continuing with the project and is exercising the statutory rights under Section 18(1) of the Act for a refund of the deposited amount along with interest in view of the failure of the respondent promoter to complete the unit much after the due date of possession which has elapsed almost five years ago,” the court noted in its order.

The due date of possession as per the agreement for sale was August 2017 – failing what the complainant allottee approached RERA in February 2019 for relief.

Prior to this, the RERA Gurugram had in September 2022 asked the ILD promoter to complete the project or face punitive action.

Finding non-compliance with RERA orders the Authority Chairman KK Khandelwal had warned the developer of sending promoters to jail.