KOLKATA: In two cases where developers faltered on flat delivery commitments, the West Bengal Real Estate Appellate Tribunal ordered the return of the money paid by the buyers and the developers also had to pay substantial interest on the amount. While one apartment is a luxury condo, the other is a small flat in a stand-alone building.
Partha Pratim and Aditi Biswas, who booked a 1,250 sqft apartment in New Town for Rs 1.2 crore and paid the entire amount to developer Shristi Infrastructure Development, moved the West Bengal Real Estate Regulatory Authority after the company failed to hand over the flat according to the agreed timeline.
Given the delay in the project progress, the Biswases decided to withdraw from the project and sought a refund with statutory interest. Following a hearing, the regulatory authority directed the promoter to return the amount paid along with interest at the rate of an additional 2% over the SBI Prime Lending Rate.
Challenging the order of the regulatory authority, the promoter approached the West Bengal Real Estate Appellate Tribunal. However, during the pendency of the appeal, the parties entered into an agreement to settle the matter.
According to the terms of the settlement, the promoter was to pay Rs 2.1 crore to the couple in five instalments.
The tribunal, without disposing of the appeal on the date when the agreement for settlement was filed, monitored the payment of the instalments made by the promoter. Accordingly, the tribunal fixed the appeal on the dates by which the promoter was to pay off the instalments. Only after the final instalment was paid did the tribunal dispose of the appeal.
In another instance in Howrah, Bharati and Asis Das bought a flat in a four-storey building from a local promoter, M/s Maa Batai Construction, in Aug 2017. The amount for the flat was Rs 15.5 lakh.
Thereafter, the family paid Rs 11 lakh in four instalments. Although the agreement stipulated that the promoter was to execute and register the sale deed by Sept 30, 2018, he failed to do so. Also, instead of a G+3 building, the promoter constructed a G+4 building without taking the buyers’ consent. Neither did he obtain any completion or occupancy certificate.
Left in the lurch, the buyers filed a complaint before WBRERA, which ordered the developer to return the amount with interest.
The developer contested before the West Bengal Real Estate Appellate Tribunal, which, upheld the WBRERA order and asked the promoter to not only repay the principal amount to the Dases with interest but also levied a penalty of 5% of the cost for every day’s delay in paying the amount.
