M/S AKRITI LANDCON PVT LTD vs. RAJASTHAN REAL ESTATE REGULATORY (2021)

LEGAL SUBJECTS - Consumer Protection Law, Contract Law, Administrative Law, Real Estate Law

CITATION OF THE CASE - 

 S.B. Civil Writ Petition No. 14438/2020.

FACTS -

a)   The complainant booked a flat in the project and executed an Agreement for Sale (AFS) with Akriti Landcon Pvt Ltd. The developer failed to deliver possession as per the agreed timeline, prompting the complainant to approach the Rajasthan Real Estate Regulatory Authority (RERA) for redress. Rajasthan RERA ruled in favour of the complainant, ordering Akriti Landcon to refund the amount paid along with interest. However, RERA initially granted interest only from a specific date, taking into account challenges faced by the developer.

      ISSUES -

     Did RERA have the jurisdiction to order refunds and interest in cases where developers failed to deliver possession?       

      DECISION BY COURT -

     The REAT upheld RERA's authority to adjudicate complaints and direct refunds when developers fail to meet their obligations under the Act. The Tribunal ordered that interest should be calculated from the date of deposit of amounts rather than from a later date, emphasizing that interests are restitutionary in nature.

      IMPORTANCE OF THE CASE -

     It clarifies RERA's jurisdiction and its role in protecting consumer interests within real estate transactions. The decision reinforces the principle that consumers should receive timely refunds and appropriate compensation for delays caused by developers. This ruling serves as a precedent for similar disputes involving delayed possession and inadequate service, guiding future interpretations of consumer rights under RERA.

      Compiled by Adv. Bincy Benny, Research and Training Admin, ATPA.