Tuesday 12 September 2017


Right of the allottees to claim amount from the Developer

As per Section 18(1) of the Real Estate (Regulation and Development) Act, 2017, the allottee has a right to claim the amount paid by him to the promoter in respect of any apartment/plot/building.

Circumstances under which the allottee can claim refund of amount:
·         If the promoter fails to give possession of the apartment/plot/building in accordance with the terms of agreement of sale, duly completed by the date specified therein, or
·         If the promoter discontinues his business as a developer due to:
o   suspension or revocation of registration, or
o   Any other reason

Allottee has the following options in case of above mentioned circumstances:
·         The allottee can withdraw from the project, or
·         The allottee can continue with project

·         If the allottee withdraws from the project:
o   Allottee can claim, the amount paid by him in respect of that apartment/plot/building, without affecting any other remedy available; and,
o   Interest @ 2% above the prevalent Highest Marginal cost of lending rate of State Bank of India prevailing on the date on which the amount becomes due and;
o   Compensation as may be decided by the Adjudicating Officer appointed for the purpose, after giving the person concerned a reasonable opportunity of being heard.

·         If the allottee continues with the project:
o   Can claim interest at 2% above the prevalent Highest Marginal cost of lending rate of State Bank of India for every month of delay till the handing over of the possession.

Conclusion:
Recently, a complaint was filed under Section 18 of RERA by Kamlesh Ailani against Ekta Parksville Homes Pvt. Ltd. In that the parties amicably settled their dispute and the complainants received full amount of their advance payment and their claim was fully satisfied.

The copy of the order can be downloaded from the following link:


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