Categories: Rera

Failed in refund… developer sentenced to jail

Failed in refund… developer sentenced to jail The developer failed to pay the amount that was supposed to be refunded to the buyer, leading to strict action from RERA (Real Estate Regulatory Authority). The developer was sentenced to one month in jail. Additionally, RERA ordered that the amount owed to the buyer be paid immediately with an annual interest of 10.75%.

Sohan Lal from Ghaziabad invested in a commercial real estate project in Sector 89, Gurgaon. He purchased a 300-square-foot shop in the project, which is spread across 5.5 acres, for Rs 26.07 lakh. According to the sale agreement, the shop was to be handed over within 36 months. Until the possession was given, the developer had agreed to pay a monthly rent of Rs 27,000. However, the developer failed to deliver the shop on time and also did not pay the promised rent.

Frustrated, Sohan Lal approached the Haryana RERA. On November 15, 2023, RERA ruled in his favour, ordering the developer to refund the amount paid by the buyer along with an annual interest of 10.75%. Despite the ruling, the developer failed to respond or comply with the order.

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Sohan Lal again approached RERA, and after reviewing the case, the Gurgaon bench of RERA expressed strong disapproval of the developer’s actions. It noted that the developer not only failed to comply with the orders but also ignored the notices. As a result, the developer was sentenced to one month of regular jail and was instructed to pay the amount owed to the complainant along with interest. The police were directed to bring the developer before them on April 16 for further proceedings.