Homebuyer Cannot Claim Refund Of Club Fee Included In Sale Agreement: Himachal Pradesh RERA

The Himachal Pradesh Real Estate Regulatory Authority (Authority) held that club membership charges clearly included in the Agreement for Sale form part of the agreed cost of the flat, and no refund can be claimed merely because the membership was allegedly optional.

A Bench comprising Chairperson R.D. Dhiman and Member Vidur Mehta, dismissed the complaint filed by the homebuyer, who had sought refund of Rs. 25,000 charged by the builder towards club membership, holding that the charge was contractually binding under the Agreement for Sale.

The Authority held:

“Once a charge is expressly mentioned in the Agreement for Sale and is accepted by the allottee/ complainant, the same cannot be treated as optional merely on the basis of 'subsequent conduct or selective enforcement. The rights and liabilities of the parties flow from the Agreement for Sale executed between them and the complainant is bound by the terms of the Agreement for sale which he has voluntarily accepted.”

The homebuyer had purchased a residential flat in the project “Omaxe Parkwood, Baddi” in 2017. The sale transaction was completed, and the sale deed was executed and registered between September and October 2019. At the time of visiting the builder's Chandigarh office for execution of the sale deed and obtaining the necessary documents, the builder allegedly demanded Rs. 25,000 towards club membership, informing the homebuyer that registration of the flat would not be carried out unless the amount was paid. Left with no alternative, the homebuyer arranged and paid Rs. 25,000 to complete the registration.

Subsequently, the homebuyer came to know from other allottees in the same project that club membership was not compulsory. Upon personal verification, several allottees confirmed that they had neither paid club membership charges nor faced any registration issues. It was further noted that out of more than 700 flats in the project, only about 50 allottees had taken club membership, indicating that the membership was optional for others.

Despite repeated emails, telephonic communications, and personal requests, the builder refused to refund the Rs. 25,000, stating that the amount was non-refundable. According to the possession letter, the cost of the flat was Rs. 14.45 Lakhs, whereas the homebuyer had paid Rs. 14.70 Lakhs, which included the club membership charges. Aggrieved, the homebuyer filed the complaint seeking refund of Rs. 25,000.

The Authority examined the Agreement for Sale, which formed an integral part of the contractual arrangement between the parties. It observed that Annexure-B (Part-I) titled “Cost Details of Unit” specifically included Rs. 25,000 under the head “Club Cost.” The charge was not indicated as optional but formed part of the total sale consideration. Clause 8(a) of the Agreement for Sale required the homebuyer to pay the basic sale price and other applicable charges, making it clear that the buyer agreed to pay all charges under the agreement, including club cost.

The Authority further noted that under the RERA, 2016, refund is ordinarily granted in cases involving delay in possession, cancellation of allotment, failure to complete the project, or violation of statutory obligations. Since the complaint only concerned club membership charges that formed part of the agreed sale consideration, no ground for refund was made out.

Accordingly, the Authority held that the complaint seeking refund of Rs. 25,000 towards club membership charges was not maintainable and dismissed the complaint.