Short Answer

Yes, if a builder refuses to refund earnest money, it can be considered a RERA issue.

Detailed Explanation

Section 18 of the Gujarat RERA Act, 2016 deals with the refund of money and states that if the promoter fails to complete or is unable to give possession of the property, the entire amount with interest shall be refunded to the allottee. This provision ensures that the earnest money paid by the allottee is protected, and they have the right to claim a refund in case of non-compliance by the builder.

In practice, if a builder refuses to refund earnest money, the allottee can file a complaint with the Gujarat RERA Authority. The Authority will then investigate the matter, and if the builder is found to be at fault, necessary directions will be issued for the refund of the earnest money along with any applicable interest.

Real-world Scenarios

• Mr. Patel booked a flat with a builder by paying earnest money. However, due to project delays, he decided to cancel the booking. The builder refused to refund the earnest money. Mr. Patel filed a complaint with Gujarat RERA, and after investigation, the Authority directed the builder to refund the amount with interest.

• Ms. Shah invested in a property but later discovered legal issues with the project. She requested a refund of the earnest money, but the builder was unresponsive. She approached Gujarat RERA, and the Authority intervened to ensure the refund was made as per the law.

• In a case where a builder goes bankrupt and is unable to refund the earnest money, Gujarat RERA can facilitate the process of refund through the established mechanisms to protect the allottees' interests.

References

• Section 18 of the Gujarat RERA Act, 2016: https://gujrera.gujarat.gov.in/