Bihar RERA Says Landowner's Flat Shortfall Claim Against Builder Not Sustainable After Alternate Flat Deal

The Bihar Real Estate Regulatory Authority has held that a landowner's claim that a builder had shortchanged him in the allocation of flats in the “Hashmi Residency” project in Patna was not sustainable, after finding that he had accepted an alternative flat in another project towards adjustment of his share.

The single bench of Inquiry Commissioner Sanjaya Kumar Singh said the subsequent agreement signed by the parties reflected their consent to the adjustment of the complainant's share.

“Accordingly, this Bench holds that the claim of the Complainant regarding deficiency in handing over the agreed share is not sustainable, as the Complainant has already received his share in the project as explained in the preceding paragraphs.”

The dispute arose from a development agreement dated September 26, 2017, under which landowners engaged Honest Builders and Developers Pvt. Ltd. to develop 9,890 sq ft of land at Chitkohra in Patna under the project “Hashmi Residency.” The project was to be completed within two years with an additional six-month grace period.

The complainant approached Bihar RERA alleging that although possession of nine flats was handed over on April 13, 2022, he was contractually entitled to ten flats, corresponding parking spaces, and a 50% share in the built-up area. He also alleged illegal construction, deviation from sanctioned plans, denial of parking allocation, and failure to provide compensation.

The builder argued that co-complainant Arbaz Shoaib Hashmi had no standing since he was neither a party to the development agreement nor an allottee. It also accused the complainant of suppressing material facts and unlawfully occupying parking space by setting up a gymnasium and encroaching on common areas.

It also relied on a February 5, 2024 agreement under which the complainant accepted a 600 sq ft flat in “Kortha Residency” to make up for the alleged shortfall in his share.

After reviewing the record, including the technical report and photographs, the Authority found no evidence of deviation from the sanctioned plan and said the project had been built in line with the approved Basement + Ground + 3 Floors structure.

It further noted that the February 2024 agreement clearly showed the complainant's consent to adjustment of his share through allotment of the alternative flat. The Authority also referred to an earlier settlement agreement dated March 16, 2018, executed in relation to a title dispute concerning the project land.

While disposing of the complaint, Bihar RERA directed the builder to ensure the complainant's peaceful possession of the alternative flat and complete all necessary formalities within 60 days. It also ordered proper demarcation and allocation of parking spaces in accordance with the development agreement.

Separately, the complainant was directed to remove the alleged illegal gymnasium construction, if any, from the parking area and refrain from making any unauthorized construction or encroachment in common areas.

Liberty was granted to approach the Adjudicating Officer for compensation, if any.

For Complainants (Ejaz Shoaib Hussain and Mr. Arbaaz Shoaib): Advocate Helal Ahmad.

For Respondent (Honest Builders and Developers Pvt. Ltd.): Advocate Ashar Akhtar.