The Rajasthan Real Estate Regulatory Authority, Jaipur, recently issued an order in the case of Raj Kumar Jain versus Geeta Construction. The complaint was filed by Raj Kumar Jain against Geeta Construction regarding a project called "Eden Heights." Despite multiple opportunities to present their defense, Geeta Construction failed to appear in court. The order, issued on 14th February 2023, ruled in favor of the complainant, directing Geeta Construction to refund the entire amount paid by Raj Kumar Jain along with interest and adhere to a compliance deadline.
Background and Allegations
Raj Kumar Jain, the complainant, was represented by Advocate Rishi Raj Maheshwari, while Geeta Construction, the respondent, remained absent throughout the proceedings. The agreement between the parties, dated 14th January 2014, outlined that Geeta Construction would hand over possession of Flat No. 102 to Raj Kumar Jain within 36 months from the agreement's execution. However, six years have passed since the promised possession date, and the flat has not been delivered.
Alleged Fraud and Financial Loss
Raj Kumar Jain discovered that Geeta Construction had sold Flat No. 102 to a third party, Chandra Prakash Doot, on 24th August 2018. This act not only constituted fraud against Raj Kumar Jain but also resulted in significant financial loss and mental agony. The complainant sought a refund of the entire amount paid, amounting to Rs. 35.75 lakh, along with interest and compensation.
Geeta Construction's Absence and Order
Geeta Construction failed to appear before the Rajasthan Real Estate Regulatory Authority on multiple occasions, indicating either a lack of defense or an intentional effort to evade the proceedings. The authority, in its previous hearing on 29th November 2022, had warned Geeta Construction about the consequences of continued absence. As a result of the respondent's persistent non-appearance, the matter was decided to be heard ex-parte.
Authority's Ruling and Directions
Upon reviewing the evidence and considering the respondent's absence, the Rajasthan Real Estate Regulatory Authority ruled in favor of the complainant. The authority directed Geeta Construction to refund the entire amount of Rs. 35.75 lakh, along with interest. The interest was calculated at the rate prescribed in the Rajasthan Real Estate (Regulation & Development) Rules, 2017, which was set at the State Bank of India's highest Marginal Cost of Funds based Lending Rate (MCLR) plus 2%, totaling 9.30%.
Compliance and Consequences
Geeta Construction was ordered to comply with the authority's directive within 45 days from the date of the order. Additionally, the respondent was required to submit a compliance report within 15 days after fulfilling the refund and interest payment. Failure to comply within the specified timeframe would empower the complainant, Raj Kumar Jain, to initiate the recovery process through the execution of the decree as per Section 40(1) of the Act and the Rules.
The Rajasthan Real Estate Regulatory Authority's order in the case of Geeta Construction versus Raj Kumar Jain has provided justice to the complainant. The authority found Geeta Construction guilty of breach of agreement and selling the flat in question to a third party despite receiving the full payment from the complainant. The ruling directs Geeta Construction to refund the entire amount with interest. This case serves as an example of the authority's commitment to protecting the rights of homebuyers and ensuring accountability within the real estate sector.
Note: The information provided in this article about Rajasthan Real Estate Regulatory Authority (RRERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances. The information provided in this article is based on the Complaint No. RAJ-RERA-C-2020-3402 before the Rajasthan Real Estate Regulatory Authority
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