Rajasthan REAT Dismisses 20 Homebuyers' Refund Appeals After Project Completion Certificate

The Rajasthan Real Estate Appellate Tribunal (REAT), Jaipur, has recently dismissed appeals filed by 20 homebuyers seeking refunds in the “Sai Angan” housing project at Kuchaman City in Nagaur district, holding that once a project stands completed and a valid Completion Certificate has been obtained, a refund cannot be granted.

A bench comprising Chairperson Justice Madan Gopal Vyas and Judicial Member Yudhisthir Sharma upheld the Rajasthan RERA order, observing. "In such circumstances for well-being of real estate project integrity and stake holders' equity learned Regulatory Authority rightly rejected the claim of refund after post Completion of project"

The tribunal further held that the order rejecting refund “does not suffer any arbitrariness or without jurisdiction, therefore, liable to be affirmed.”

The allottees-homebuyers had booked flats in 2018 and 2019 under the Prime Minister Jan Awas Yojana-2015 scheme. Possession was initially assured by July 2020. The expected date of delivery was later recorded as 23 November 2021. The flats were not handed over by that date.

The homebuyers approached Rajasthan RERA seeking a refund of the amounts deposited along with interest.

During the proceedings, the developer obtained a Completion Certificate on May 20, 2022. It was accepted by RERA on 14 August 2022. Offers of possession were subsequently issued in August 2023.

By its order dated August 28, 2024, RERA rejected the prayer for refund. It directed the allottees to take possession subject to payment of any balance amount. It also granted delay interest “@ 9.10% highest MCLR of SBI + 2%, i.e., 11.10% per annum excluding moratorium period,” from 23 November 2021 until the offer of possession.

Challenging the rejection of the refund, the allottees approached the Appellate Tribunal under Section 44 of the Act.

They argued that the Completion Certificate was obtained without proper completion of the project. They alleged deviations from the sanctioned plan, including construction of shops in parking areas.

The developer, on the other hand, submitted that the project stood completed and that more than 60 families were already residing there out of 180 bookings.

The Tribunal noted that the Completion Certificate had been obtained from the competent authority and accepted by RERA. It also recorded that almost the entire sale consideration had been deposited by the allottees.

It further observed that pursuant to RERA's order dated May 13, 2020, the Covid-19 pandemic was treated as “Force Majeure” for the extension of timelines.

Referring to the Supreme Court's ruling in Ireo Grace Realtech Pvt. Ltd. v. Abhishek Khanna, the tribunal observed that after completion of a project, a refund should not be granted, keeping in view the well-being of the real estate sector.

However, the tribunal clarified that the complainants remain at liberty to withdraw from the project in accordance with the contractual terms and conditions of their agreements.

All 20 appeals were accordingly dismissed. Interim applications were also closed.

For Appellants (Allottees): Advocate Mohit Pareek

For Respondents (Promoter): Advocates Chandra Shekhar Sinha and Dev Yadav