Bihar RERA Rejects Premature Compensation Claim Against Maa Vindhyavasani Developers, Allows Fresh Plea

The Bihar Real Estate Regulatory Authority on 21 July held that a homebuyer cannot secure compensation from a developer until the Real Estate Regulatory Authority or criminal court first determines the developer's liability, observing that parallel proceedings make a compensation claim premature.

Adjudicating Officer Vinod Kumar Tiwari rejected Tarun Alex's compensation complaint against Maa Vindhyavasani Developers Pvt. Ltd. concerning its Rainbow Residency project, while allowing him to file a fresh compensation claim after the proceedings before the Authority concluded. He observed:

“Considering above facts, it appears that unless and until respondent found guilty by Real Estate Regulatory Authority or criminal court, and also without considering such order, compensation cannot be either calculated or awarded. As such this case appears to be pre-mature.”

The dispute arose after Tarun Alex booked a flat in Maa Vindhyavasani Developers' Rainbow Residency project.

Tarun Alex claimed that he entered into a development agreement with the developer on 7 March 2021 for a flat priced at Rs. 45 lakh plus GST. He claimed that he paid Rs. 48.91 lakh towards the flat and that the agreement required the developer to hand over possession by 30 June 2022, with a six-month grace period. He alleged that the developer failed to deliver possession and stopped responding to him. He therefore sought Rs. 70 lakh as compensation along with interest and litigation costs and filed a compensation complaint on 28 December 2025.

During the proceedings, he informed the Adjudicating Officer that he had separately filed a Form-M complaint before the Bihar Real Estate Regulatory Authority seeking refund and other reliefs. The record showed that authorities registered an FIR against the developer on 7 January 2026 alleging offences of criminal breach of trust, cheating and other offences under the Bharatiya Nyaya Sanhita. Tarun Alex submitted that he made payments according to the agreement and produced proof of payment. He also relied on the criminal proceedings initiated against the developer.

Maa Vindhyavasani Developers disputed the payment claim and contended that Tarun Alex paid only Rs. 27.09 lakh till 18 May 2021 and defaulted thereafter. The developer submitted that the parties had extended the possession timeline to 30 September 2023 after accounting for the COVID-19 extension. Further, it claimed that the flat remained ready for possession subject to payment of the outstanding amount and offered to refund the money after cancellation of the agreement. It argued that Tarun Alex could not pursue compensation proceedings while he had already approached the RERA Authority and initiated criminal proceedings.

Accepting the objection, the Adjudicating Officer held that the compensation claim required a prior determination of the developer's liability. The Adjudicating Officer observed:

“The act of the complainant has defect of double jeopardy. Unless and until respondent becomes guilty for any act, compensation cannot be awarded.”

Accordingly, the RERA dismissed the complaint as premature and permitted Tarun Alex to file a fresh compensation claim after the proceedings before the Authority concluded.