The Haryana real estate regulatory authority (RERA), ordered the Vatika Limited to refund money to 28 buyers with interest at the prescribed rate as it failed to start the construction of the project.
RERA has said that the developer Vatika will have to pay the loan amount to respective banks also if it has been availed by the allottees.
“Since the project has been abandoned by the promoter, the allottees are entitled for the refund of the amount paid by them against the allotment of their units with interest at the prescribed rate of 10.25% per annum from the date of each payment till the date of actual realisation within the timelines as prescribed under the rule 16 of the Rules 2017,” said the RERA court.
The court said, “However, while depositing sale consideration of the allotted units, some of the allottees raised loans from the different financial institutions and the same was paid to the promoter. While refunding the amount deposited by the allottees who raised loans against the allotted units the promoter would be liable to pay that amount with interest up to date to those financial institutions and remainder, if any, would be paid back to the allottees,” RERA has said in the order.
The case is about a real estate project ‘Turning Point’ of Vatika Limited at sector 88-B, Gurgaon. Vatika Limited obtained licence from the DTCP in 2013 to develop Turning Point – a residential group housing project.
The court observed that after its launch, units in the same were allotted to different persons on different dates and that too for variable sale consideration.
“Though, the due date for completion of the project and offer of possession of the allotted units was mentioned as September 15, 2025 but after more than four years from the booking there is no physical work progress at the site except for some digging work,” the court has said.
The court even observed that the promoter failed to file quarterly progress reports giving status of work progress required under section 11 of Act 2016.
“Such offences are unacceptable. The promoters cannot take allottees for granted after taking their hard earned money. RERA has to act as per the law and ensure allottees’ money is safe and they get also compensation for mental trouble,” said KK Khandelwal RERA chairman.
