Aishwarya Avant Builders vs. Rajeshwari Ramesh Pillai

Facts

The Appellant, Aishwarya Avant Builders Pvt. Ltd., challenged a judgment of the Maharashtra Real Estate Appellate Tribunal. The Tribunal had partly allowed an appeal by the Respondent, Rajeshwari Ramesh Pillai, setting aside an order by MahaRERA. The Tribunal directed the Appellant to refund Rs.13,50,000/- to the Respondent with interest. The Respondent had booked Flat No.1603 for Rs.1,04,00,110/- as per an allotment letter dated May 28, 2019, and paid Rs.13,50,000/-. However, the Appellant failed to execute a registered agreement for sale as required by Section 13 of the RERA Act. The Appellant contended that the actual consideration was less, with other amounts covering stamp duty, registration, possession charges, and GST. The Appellant had deducted Rs.11,50,011/- from the refund, returning only Rs.1,99,989/-.

Held

The Court held that the Appellant had clearly violated Section 13 of the RERA Act by failing to execute a registered agreement for sale despite receiving Rs.13,50,000/- from the Respondents. The Court found that the allotment letter itself fixed the 'final price' at Rs.1,04,00,110/-, and the Appellant's contention that this included other charges was not supported by the document. Regarding the MahaRERA order, the Court held that the phrase 'as agreed by the respondent' in paragraph 10 did not grant the Appellant license to deduct 10% of the amount. The MahaRERA order clearly directed either the execution of a registered agreement or the refund of the entire money paid. The Court noted the Appellant's arbitrary action in deducting Rs.11,50,011/-, resulting in a paltry refund of Rs.1,99,989/-. The Court found no substantial question of law and dismissed the appeal, imposing costs of Rs.1,00,000/- on the Appellant, directing payment of the Appellate Tribunal's order amount and the costs by April 15, 2025.

Key Issues

1. Whether the Appellant violated Section 13 of the Real Estate (Regulation and Development) Act, 2016 (RERA Act) by failing to execute a registered agreement for sale after receiving Rs.13,50,000/- from the Respondents. The Appellant argued that the allotment letter fixed the final price at Rs.1,04,00,110/-, and that the balance amounts included stamp duty, registration fees, possession charges, and GST, implying the actual consideration was lower. The Respondents contended that the allotment letter clearly stated the final price and that the Appellant's failure to execute the agreement constituted a violation. 2. Whether the MahaRERA order dated January 12, 2021, permitted the Appellant to deduct 10% of the total sale proceeds as liquidated damages upon cancellation. The Appellant argued that the order's reference to refund 'as agreed by the respondent' allowed for such deductions. The Respondents argued that the MahaRERA order clearly directed either the execution of an agreement or a full refund of the amount paid, without any mention of deductions.