Haryana Real Estate Regulatory Authority (HRERA) have ordered 17 Builders, to refund Rs. 50 Crores to the homebuyers of various construction projects for non-delivering the projects well on time. HRERA has issued multiple orders for 17 Builders directing them to refund the home buyers their hard-earned money along with 9.70% Interest within 90 days.
Refund orders have been passed after listening to both the parties i.e., Homebuyers & Builders & on finding out that builders were guilty.
Approx 300 matters were listed before the authority for adjudication in July. In 63 Cases, The Authority ordered refunds with interest @ 9.70%. These Adjudications are related to 17 Builders & refund is approx 50 crores. Raheja Developers alone has to refund Approx 12 crores to 11 Homebuyers, & out of which 1 Refund is for Rs. 2.35 Crores. In another 15 matters, the authority ordered refund after the deduction of 10% of earnest money.
In all the 300 cases of July the homebuyers largely wanted their refunds. The authority also ordered refunds of nearly Rs. 6.81 crore while deciding on several bunch of complaints filed by buyers against builders such as Samyak Projects, Vatika, CHD Developers, DSS Buildtech and Experion Developers.
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Unclear whether the refunds ordered are only of the amounts collected as per PRICE INVOICEs or are also inclusive of the GST amounts collected from those named buyers and paid (or not paid) over to the Govt., ?
Further, what happens to the amounts of ITC had the realtors availed (or not availed/pending adjustment for ITC) ; is there any clear-cut mechanism in the GST Code (or Rules) to take care of the GST/ITC in such circumstances in which the transactions with the original buyers stand cancelled and fresh transactions to sell are entered into by realtors ?!
As focussed on in earlier Posts, similar problems are bound to arise when there is a ‘second sale’ under a tripartite transaction either before ‘completion’ or post completion of the project !?
One has in mind the SC Judgment # in which the ‘second buyer’s right of subrogation’ came to be invoked and decided !
#Laureate Buildwell Pvt. Ltd. Vs Charanjeet Singh (Supreme Court of India)
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