In a recent case before the Haryana Real Estate Appellate Tribunal, ZNR Builders and Developers Pvt. Ltd. appealed against an order issued by the Haryana Real Estate Regulatory Authority. The order was in response to a complaint filed by Tulsi Ram Sharma, an allottee of a flat in a project developed by ZNR Builders. In this article, we will provide a simplified explanation of the case and its key aspects.
Tulsi Ram Sharma had booked a flat in the Sai Vatika Apartment project in Faridabad, Haryana, and had already made partial payments. The agreement stated that possession of the flat would be given within a specific timeframe. However, ZNR Builders delayed the possession and demanded additional payments from Tulsi Ram Sharma. Disputing the demands, Tulsi Ram Sharma filed a complaint with the Haryana Real Estate Regulatory Authority.
About ZNR builders
ZNR Builders & Developers Pvt. Ltd., incorporated on October 13, 2006, is a private company registered in Delhi, India. It operates in the real estate sector, engaging in activities such as buying, selling, renting, and managing self-owned or leased properties. The company has an authorized share capital of Rs. 10,000,000 and a paid-up capital of Rs. 3,638,000.
The directors of ZNR Builders & Developers Pvt. Ltd. are Sandeep Gupta and Devendra Kumar Gupta.
The Impugned Order:
The Haryana Real Estate Regulatory Authority disposed of the complaint and issued certain directions. It instructed ZNR Builders to withdraw a particular demand since the matter was already sub judice (pending before the court). However, if the court ordered that the amount was payable, Tulsi Ram Sharma would have to pay it.
The Authority also directed Tulsi Ram Sharma to pay the remaining outstanding amount within a specified time frame, along with interest and delay compensation. Additionally, ZNR Builders was instructed to hand over physical possession of the flat to Tulsi Ram Sharma upon clearance of dues.
ZNR Builders, dissatisfied with the Authority's order, appealed to the Haryana Real Estate Appellate Tribunal. ZNR Builders' main contention was that their project was already completed and sold out before the Real Estate (Regulation and Development) Act 2016 (the Act) came into force. Therefore, they argued that the provisions of the Act should not apply to their project.
The Tribunal's Decision:
After considering the arguments from both sides, the Tribunal examined whether the Sai Vatika Apartment project fell within the definition of an ongoing project as per the Act. They noted that the completion certificate for the project was issued after the enforcement of the Act. Based on this, the Tribunal concluded that the project was indeed ongoing, and thus, the provisions of the Act were applicable.
In the appeal filed by ZNR Builders and Developers Pvt. Ltd., the Haryana Real Estate Appellate Tribunal dismissed the appeal and upheld the Authority's order. The Tribunal emphasized that the Sai Vatika Apartment project qualified as an ongoing project under the Act, as the completion certificate was issued after the Act came into force. Therefore, the jurisdiction of the Authority to adjudicate the complaint was justified.
This case serves as a reminder that the Real Estate (Regulation and Development) Act 2016 aims to protect the rights of homebuyers and regulate the real estate sector. Developers must comply with the provisions of the Act, even if their projects were initiated before the Act's enforcement. The decision by the Haryana Real Estate Appellate Tribunal reinforces the importance of adhering to the regulations and obligations set forth in the Act to ensure a fair and transparent real estate market.
Note: The information provided in this article about Haryana Real Estate Regulatory Authority (HRERA) 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 Appeal No. 33 of 2021 before the Haryana Real Estate Regulatory Authority
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