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The RERA in Haryana has clarified that real estate developers cannot capitalize on the provisions of the RERA Act to deny assured returns to investors. The body which stated this while disposing 26 cases for non-payment of assured investor’s returns specified that the obligation to make the payment remains with the developers. Therefore, they are not entitled to come up with a new Act after the norms of the RERA came into effect.
The chief of H-RERA stated that these cases were brought up against one of the developers in the city. It had not paid the assured returns to the investors even after receiving full payment from them. He also stated that the authority has taken a significant decision to curb dubious schemes of the developers and promoters.
Till date, the regulatory authority has received several cases where the developers have been accused of luring investors to purchase property. They also assured them of a certain amount of monthly return. Of course, buyers find these schemes lucrative as they would get the possession of the property as well as the assured rate of interest when the apartments are ready.
The authority, while pronouncing the norms, clearly stated that the Act does not have the provision of rewriting the construction obligations between the involved parties. Evidently, developers do not have the option of taking a plea, stating the absence of a contractual obligation to shell out the assured returns to the property buyers after the RERA Act in 2016.
Besides, the regulator has also pointed out that in case of disputes related to assured return schemes, the money received in advance from the investors by the developers for property was supposed to be provided to the allottee as per the pact within a stipulated time.
The builder, while considering the sale in advance, promises assured returns to the investors. Therefore, the authorities would consider the failure to pay the amount as a breach of commitment. Therefore, investors reserve the right to approach the RERA to readdress their grievances and file a complaint.
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