Delhi RERA Orders Refund After Housing Society Took Bookings Without Land Needed To Register Project

The Delhi Real Estate Regulatory Authority (Delhi RERA) has directed Diamond Multistate CGHS Ltd. to refund ₹19.89 lakh with 10.75% interest to a homebuyer who booked an apartment in its proposed Delhi Housing Scheme II project.

The Authority found that the society neither commenced the project nor informed the buyer that it lacked the land required to register it.

Member Devesh Singh held that the society had contravened Sections 12 and 18 of the Real Estate (Regulation and Development) Act, 2016 after finding that it withheld information from the allottee and failed to commence the project.

Referring to the objective of the Act, the Authority observed, "It also seeks to establish symmetry of information between the promoter and purchaser, enhance transparency of contractual conditions, set minimum standards of accountability and a fast-track dispute resolution mechanism."

The Authority said a homebuyer can seek a refund under Section 18 if a promoter fails to complete a project within the agreed timeline. It added that Section 12 also permits a refund where a buyer has been misled by information furnished by the promoter regarding the proposed project through advertisements or otherwise.

The case arose after Sanjeev Kumar Anwar (HUF) booked an apartment in the proposed Delhi Housing Scheme II project in L Zone, Dwarka, in 2018. He paid ₹19.89 lakh towards the apartment. Alleging delay and false promises, he approached Delhi RERA seeking a refund with interest.

The society said the project could not be developed because of government policies, as well as procedural and administrative factors. It offered to refund only the principal amount.

Member Devesh Singh noted that the society had admittedly received ₹19.89 lakh from the complainant. The Authority also reiterated that cooperative housing societies undertaking housing projects fall within the definition of a "promoter" under the Act and are therefore subject to RERA's jurisdiction.

The Authority found that the society had neither handed over the apartment nor even started the project. It also failed to inform the complainant that it did not have the land required to register the project.

It observed, "From the record presented before me it is clear that the Respondents not only failed to hand over the unit but even start the project. The Respondents also failed to inform the Complainant that they don't have proper land for registering the Project. This amounts to withholding the information and misleading the allottees."

Holding that the society had contravened Sections 12 and 18 of the Act, the Authority ruled that Anwar was entitled to withdraw from the project and receive a refund with interest.

It directed Diamond Multistate CGHS Ltd. to refund ₹19.89 lakh within 45 days along with interest at 10.75% per annum (MCLR + 2%) from the date of each payment until the amount is refunded

For Complainant (Sanjeev Kumar Anwar (HUF)): Advocate Ajay Kumar Singh.

For Respondent (Diamond Multistate CGHS Ltd.): Advocates Kajal Dewan and Mehak Gupta.