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Judgment
Heard counsel for the parties.
This complaint has been filed for directing the opposite parties to refund the amount which the complainants and other flat buyers have deposited with opposite party-1 to the complainants and other flat buyers with interest @18% per annum from the date of respective deposits of the money till the date of actual refund, cost of the complaint and any other relief which is deemed fit and proper in the facts of the case.
It has been stated that opposite party-1 was a company, registered under the Companies Act, 1956 and engaged in the business of development and construction of group housing project. Opposite party-2 to 7 were land owners over which the project was being developed. In the year 2014, the opposite parties launched a project of group housing in the name of ‘Nitesh British Columbia’ at Anjanapura Village, Uttarahalli Hobli, Bangalore South Taluk, Banglore district. On coming to know of the project, 20 complainants (out of which one has already withdrawn), booked the flats for their own use. Later on, they realized that the opposite parties could not proceed with the construction of the project. On coming into force of Real Estate (Regulation and Development) Act, 2016, opposite party-1, vide letter dated 06.11.2017, informed the RERA Authority that the work of the project has been stopped and they were in process of refunding the booking amounts to the allottes. In the circumstances that the opposite parties abandoned the project, the complainants cancelled their allotment vide notice dated 20.02.2018 and demanded refund of their money with interest. When notice was not honoured, this complaint was filed.
On 06.05.2019, counsel for opposite party-1 informed this Commission that they were in process of returning the principal money to the allottees. When the money was not refunded, according to the undertaking, then the complainants filed IA/1634/2020, on which this Commission, vide order dated 05.02.2020, directed opposite party-1 to refund the money. In compliance of the order dated 05.02.2020, the principal money was refunded to the complainants from time to time upto 2021 in three instalments. Now, the dispute remains with respect of the interest between the parties.
Opposite party-1 is the promoter as defined under the RERA Act, 2016 and is liable to refund the entire money to the complainants under Section 19(4) of the RERA Act. Therefore, at present, we are not going to adjudicate the dispute between opposite party-1 and opposite parties-2 to 7, giving them liberty to resolve their dispute before appropriate forum. From the letter written by opposite party-1, it is fully clear that the project was abandoned as such opposite party-1 is liable to return the money realized from the allottees with interest. The complainants are justified in claiming their entire money along with interest.
ORDER
In the result, the complaint is allowed. Order dated 05.02.2020 shall be part of this judgment. Principal amount of the complainant has already been returned. Opposite party-1 is directed pay interest @9% per annum on the deposits of the complainant from the date of respective deposits till the date of refund of principal amount, within a period of two months from today.