CHANDIGARH: In an effort to combat black money in the real estate sector, the Real Estate Regulatory Authority (Rera) Haryana has started referring cases involving cash transactions exceeding Rs 2 lakh to the income tax department for further investigation.
Recently, the Panchkula bench of Rera Haryana mandated a realtor to reimburse Rs 10 lakh received in cash from a buyer for a flat in Panipat, plus Rs 7.73 lakh in interest at an annual rate of 10.9%. The buyer, Jasvir Singh from Panipat district, lodged a complaint against Real Heights Developers, substantiating his claim with comprehensive financial records and a proper cash receipt. The developer, however, refused to provide a sample signature for the cash receipt, bolstering the complainant’s position.
The order was issued by Rera members Geeta Rathee Singh and Chander Shekhar after reviewing the case at the Panchkula bench.
The complaint was registered on July 6, 2020, for violating the provisions of the Rera Act and associated regulations. The Act mandates that promoters are responsible for meeting all obligations toward allottees as agreed upon.
The complainant booked a 2BHK+study flat in the ‘Harmony Homes’ project located in Sector 40, Panipat, Haryana, on June 9, 2018, by paying Rs 1,18,537 via cheque for the booking. The total sale price of the flat was set at Rs 23,50,000.
On June 26, 2018, the complainant made an additional cash payment of Rs 10,00,000 to Sanjay Gupta, the company’s director/partner. The company issued a receipt confirming this cash transaction, explicitly noting “confirmed booking” for the flat.
However, the company only refunded the Rs 1,18,537 paid by cheque, withholding the remaining cash payment of Rs 10 lakh.
Frustrated, the complainant turned to Rera for resolution. In defense, the developer contended that the complainant had deliberately avoided paying the remaining amount because he was unhappy with his assigned unit on the 14th floor and preferred a flat on the 2nd floor.
The company denied that the cash payment was made, alleging that the receipt was forged by the complainant.
During the hearing, the authority noted that the receipt for the Rs 10 lakh cash payment bore the company’s stamp and Sanjay Gupta’s signature. Upon closer inspection, the handwriting on the receipt matched that used on the receipt for Rs 1,18,537 paid by cheque.
Sanjay Gupta appeared before the authority but refuted the submitted signatures. When requested to provide his signatures for forensic analysis, he declined. The complainant, in contrast, provided complete documentation concerning the source of his cash payment.
After reviewing all testimonies, the authority concluded that promoters often exploit their power to unfairly benefit at the expense of naive homebuyers. “The core purpose of the Act is to curb such malpractices, which erode the trust of allottees in the system. Otherwise, the Act’s intent is undermined. The authority recognizes that a cash payment of Rs 10 lakh was made by the complainant to the company for his booking. Following the unsuccessful allotment, the respondent sought to evade responsibility by dismissing the complainant’s claims,” stated the bench.
The authority also emphasized that cash transactions exceeding Rs 2,00,000 had occurred. “The authority directs its office to send a copy of this order to the director general of investigation in Sector 17, Chandigarh, to initiate appropriate legal action,” the bench concluded.
