“The cases so decided largely pertain to a prominent developer namely Vatika Limited," the HRERA spokesperson said. Haryana’s Real Estate Regulatory Authority (HREA) Wednesday passed a landmark judgment regarding payment of assured returns as promised by the promoters/ developers/ builders to the allottees at the time of agreement for sale for a real estate unit.
“This judgment will help realise crores of rupees due on the errant promoters, who had arrogantly and mischievously refrained from paying assured returns on deposits/amount collected from naive allottees (almost 100 per cent consideration amount at very onset of agreement for sale) by floating various assured return schemes,” HRERA spokesperson said.
“The cases so decided largely pertain to a prominent developer namely Vatika Limited. This decision of the authority is very significant and shall go a long way in curbing/regulating the malpractice by the promoters of raising funds by floating dubious deposit schemes such as assured returns schemes. A large number of cases are being filed before the HREA, Gurgaon wherein the aggrieved allottees alleges that the promoter had lured them to invest in its real estate project by promising a certain rate of monthly return on the money deposited as consideration against the price for the unit. The assured return schemes often appears very lucrative to the buyer/purchases as he is promised an assured rate of interest and will also be in possession of property on agreed date of completion. By floating assured return schemes promoters/developer/ builders collect almost 100 percent payment from allottees at very onset…,” the spokesperson said.
“…the bench headed by Dr K K Khandelwal, Chairman, HREA held that the promoters/developers/builders are liable to pay the assured return as agreed upon between the parties. While pronouncing the judgment, the authority, relying on the view taken by the Bombay High Court on Neelkamal Realtors Suburbans case, held that Real Estate (Regulation and Development) Act, 2016, has no provision for re-writing of contractual obligations between the parties, therefore… cannot be allowed to take a plea that there was no contractual obligation to pay the amount of assured returns to allottees after coming into effect of the RERA Act, 2016 or that a new agreement is being executed with regard to that fact,” the spokesperson said.
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