Developer hikes price after booking flat, RERA asks him to refund booking amount

When a developers advertises a flat for a lower amount to lure home buyers and increases it within 48-hours of the receiving the advance money, the home buyer loses faith in the developer following which the builder forfeits the money. This is what happened with a home buyer named Nakul Gupta, who after seeing an advertisement by Omkar Realtors subsidiary, Accord Builders selling a home in their project Kurla Vive for Rs 1.07 crore made a booking, and paid Rs 1 lakh as the advance money.

The developer allegedly within 48-hours hiked the price to Rs 1.21 crore. The buyer lost faith in the developer and cancelled the booking post which developer forfeited the amount. Only after the case went to MahaRERA, the developer agreed to repay the Rs 1 lakh.

Gupta alleged that, he along with his mother Joohi booked a flat in the project named Vive, Kurla after reading an advertisement in March 2017. According to him the brochure had the price mentioned as Rs 1.07 crore post which, he filled the application form and paid Rs 1 lakh as the advance money. Gupta alleged that at the time of filling of the application the flat price wasn't mentioned, however, after two days the builder escalated the price to Rs 1.21 crore, arbitrarily without giving any valid reason. Post which, Gupta asked the builder to cancel the booking but the developer refused to respond and instead sent an email stating that his booking amount stands forfeited.

The complainant, therefore, alleged that the builder misrepresented the price in the brochure, and then arbitrarily escalated the price and also forfeited his application money for their wrongful, actions. The complainant, therefore, prayed for refund of his application amount as well as compensation for the mental agony he suffered.

The matter was heard twice in January, where the complainant's mother appeared and argued at length. In the last hearing held in February, the lawyers for the developer finally submitted an undertaking on record stating that they were ready to refund the booking amount of Rs 1 lakh to the complainant post which Dr Vijay Satbir Singh, the adjudicating officer, disposed off the case.

When contacted, the developer they had this to say. "This was purely an issue of pricing misunderstanding and cancellation by a customer whereby the token amount of Rs 1 lakh has been voluntarily refunded by the company; post the matter being taken to RERA ", said Pradeep Jain, Legal Head, Accord Builders.

JUSTICE FOR HOME BUYERS

• The matter was heard twice in January, where the complainant’s mother argued at length
   
• The lawyers for the developer submitted an undertaking that they will refund the booking amount