Haryana RERA Directs Builder To Refund Homebuyers Of Mahira Project After Registration Revocation

The Haryana Real Estate Regulatory Authority (Authority) on 13 February directed Mahira Buildtech to refund the amounts paid by homebuyers in the project Mahira Homes–103 after the project's registration was revoked due to serious irregularities.

A Bench comprising Chairperson Arun Kumar observed that, as the project registration had been revoked and the builder could no longer continue development, the homebuyers were entitled to a refund under Section 18 of the RERA Act, 2016, along with interest.

It held:

“...since the registration certificate of the project stands revoked under Section 7(1) of the Act, 2016 vide order dated 11.03.2024, the promoter cannot continue to carry out business in respect of the project. Further, in view of the serious violations committed by the promoter, there appears to be no possibility of completion of the project in the near future.”

Four homebuyers of the project “Mahira Homes–103” in Sector 103, Gurugram, filed complaints before the Authority seeking a refund of the amounts paid after waiting several years for possession. The project is being developed by Mahira Buildtech under the Haryana Government's Affordable Housing Policy, 2013.

The builder entered into Agreements for Sale with the homebuyers between 2019 and 2020, with each flat costing approximately Rs. 29–30 lakhs. Three homebuyers had paid Rs. 11.75 lakhs each, while one had paid Rs. 12.07 lakhs.

As per the agreement, the builder was required to hand over possession of the flats by 29 July 2024; however, possession has not been offered to the homebuyers to date. Since the issues raised in the complaints were similar, the Authority heard all four complaints together for common adjudication.

The Authority observed that the project had faced serious regulatory action. In May 2022, a suo motu proceeding was initiated against the builder after a site inspection revealed that physical progress was only 15–20 percent, not commensurate with the funds withdrawn.

The Director, Town and Country Planning also blacklisted the builder, and the Authority froze the project's bank accounts for non-compliance with the provisions of the Act. Subsequently, the Authority revoked the project's registration under Section 7(1) of the RERA Act, 2016.

The Authority observed that when a builder is unable to hand over possession due to suspension or revocation of project registration, the allottee is entitled to withdraw from the project and claim a refund of the amount paid, along with interest.

Considering the circumstances and the lack of any realistic possibility of completing the project in the near future, the Authority held that the complainants are entitled to a refund.

Accordingly, the Authority directed the builder to refund the entire amount received from the homebuyers, along with interest at 10.80% per annum.