RERA - Section 19(4) Right to claim Refund

Section 19(4) of RERA Act, 2016 outlines the rights of an allottee (a person to whom a property is allotted) in the event that a promoter (the developer or builder) fails to fulfill their obligations under a real estate sale agreement.

Key Points:

1. Right to Refund: The allottee has the right to claim a refund of the amount they paid to the promoter.

2. Interest at Prescribed Rate: The refund must include interest at a rate prescribed by the Act. This means that the allottee is not just entitled to the principal amount paid, but also additional money calculated as interest, which compensates for the time the funds were with the promoter.

3. Compensation: Besides the refund and interest, the allottee is also entitled to compensation as provided under the Act. This compensation is meant to cover any additional losses or damages suffered due to the promoter's failure to deliver the property.

Conditions for Claiming Refund:

1. Non-Compliance with Sale Agreement: The promoter fails to comply with the terms of the sale agreement. This could include not delivering the possession of the property within the stipulated time frame or any other breach of the terms agreed upon in the sale agreement.

2. Inability to Give Possession: The promoter is unable to hand over the possession of the apartment, plot, or building as agreed. This might happen due to various reasons, such as delays in construction, legal issues, or financial problems faced by the promoter.

3. Discontinuation of Business: If the promoter discontinues their business operations. This could occur due to:

a. Suspension of Registration: The promoter's registration is temporarily suspended.

b. Revocation of Registration: The promoter's registration is permanently revoked.

Legal Framework:

1. Act: The reference to "this Act" typically means a specific piece of legislation governing real estate transactions (e.g., the Real Estate (Regulation and Development) Act, 2016 in India).

2. Rules and Regulations: The Act is supplemented by detailed rules and regulations, which provide the procedures and specifics on how various provisions of the Act are to be implemented.

Process:

1. Filing a Claim: The allottee must file a claim for the refund, interest, and compensation. The process for this claim would be outlined in the rules and regulations associated with the Act.

2. Authority's Decision: The designated authority (e.g., Real Estate Regulatory Authority) will examine the claim and determine the appropriate amount of refund, interest, and compensation due to the allottee.

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