Goa RERA imposes Rs 2.5 lakh fine on Adwalpalkar Constructions

In one of the first stringent order under the Real Estate (Regulation and Development) (RERA) Act, 2016, the Goa Real Estate Regulatory Authority imposed a penalty of Rs 2.5 lakh on a prominent real estate firm, Adwalpalkar Constructions and Resorts for “not honoring the commitment” to a buyer.   The interim authority of Goa RERA Sudhir Mahajan in the order stated that the builder must repay the complainant the entire sum paid including interest on the Rs 14.93 lakh that was paid as token amount and installment for a flat at Adwalpalkar’s Sanctum. Builder directed to repay interest, GST deduction “For not honoring the commitment by the respondent and for not delivering the flat to the complainant… I impose a penalty of Rs 2.5 lakh. This penalty of Rs 2.5 lakh is over and above the interest component and GST deduction, which the respondent shall refund to the complainant,” Mahajan said in the order, a copy which is with media. According to the complaint, Sushil Kumar Modi booked a flat with the builder by paying a token amount of Rs 2 lakh followed by a sum of Rs 7.86 lakh a month later in 2016. A further payment of Rs 5 lakh was paid to the builder on the condition that the agreement for sale would be inked. Modi was issued an allotment letter for a 102 sqm flat on the third floor of block A, whose total value was Rs 47.9 lakh. However, after Modi expressed some reservations with the draft agreement for sale, the builder canceled the allotment of the flat. “The complainant was shocked to receive a cheque of Rs 14.20 lakh after deducting the GST along with a letter that the respondent has terminated and canceled the booking of the flat,” the order stated. The interim RERA authority held hearings and heard both the parties before passing the order. “Having gone through entire matter, I am of an opinion that the complainant needs to be compensated by the respondent for the loss which he has incurred, on account of GST deduction, interest component on the deposit which he made to the respondent and finally not getting the flat after keeping the booking alive by making due payments as asked for by the respondent,” Mahajan stated in the order. Adwalpalkar Constructions and Resorts had not appealed against the order, officials said.