Promoters Cannot Arbitrarily Forfeit Buyer’s Savings: Haryana Real Estate Appellate Authority Ruling
In a landmark decision, the Haryana Real Estate Appellate Authority (HREAT) has ruled that real estate developers cannot arbitrarily forfeit the booking amount paid by homebuyers. Emphasizing the protective role of authorities under the RERA Act, the authority stated that such unlawful actions by promoters — who usually hold a dominant position — must be curbed to ensure fairness and justice for allottees.
This verdict came in a case where the allottee had invested Rs 18.50 lakh to book a commercial property in Gurugram. The dispute centered on an alleged agreement offering a 50% discount in exchange for giving up assured returns. However, the promoter later quoted a higher rate and issued documents without proper clarity on the agreed price, prompting the allottee to challenge the move. The authority ultimately directed the promoter to refund the full amount with 9% annual interest from the cancellation date.
Read More
The authority strongly observed that buyers often use their lifetime savings to invest in real estate. If promoters are allowed to confiscate these funds without valid reasons, it would not only deny buyers their rightful property but also rob them of their hard-earned money. The ruling emphasized that regulatory bodies must protect allottees from such unjust and unethical practices.
This judgment not only benefits the individual buyer involved but also serves as a precedent against unjust forfeiture by real estate developers. It sends a clear message that promoters must act in good faith and provide transparency in agreements. Any attempt to exploit buyers through unfair terms or dominant behavior will face strict legal consequences.
