Haryana Tribunal Cracks Down on Promoters Cheating Homebuyers, Orders Strict Action Under RERA
1. Tribunal Warns Against Promoter Malpractices- The Haryana Real Estate Appellate Tribunal has issued a strong warning to real estate promoters who exploit homebuyers through misleading advertisements and false promises. The Tribunal emphasized that such unethical practices must be curbed and that strict legal action is essential to protect innocent investors and restore transparency in the housing sector.
2. Refund and Interest Ordered for Gurugram Project Buyers- In a landmark case, the Tribunal directed a promoter from Gurugram’s Sector 71 to refund the earnest money paid by the allottees, along with 10.85% annual interest, within 90 days. The order further stated that failure to comply would invite a penalty of Rs 10,000 per day under Section 64 of the RERA Act until the refund is made in full.
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3. Buyers Exercised Right to Exit Before Occupation Certificate- The case involved allottees who had booked commercial units under a “three deals in one” offer, paying only 10% at the time of booking. When the promoter failed to deliver as promised, buyers opted to exit the project before the occupation certificate application was filed. The Tribunal upheld their right to a refund, stating that their request came before the completion stage.
4. Tribunal Exposes Misleading Advertising Practices- Justice Rajan Gupta, speaking for the Tribunal, observed that the promoter’s advertisements were misleading, offering easy exit options that were later denied. Such “clever tactics,” he said, harm the credibility of the real estate industry and violate the transparency principles enshrined in the RERA Act of 2016.
5. RERA’s Role in Ensuring Transparency and Justice- Reinforcing the intent behind the RERA framework, the Tribunal noted that the Act was established to promote fair dealings, accountability, and protection for buyers. Authorities were urged to take prompt action wherever promoters exploit loopholes or violate commitments, ensuring that justice prevails and the objectives of RERA remain uncompromised.
