Builder has to Compensate RWA for Handing Over Unfinished Project

NEW DELHI: The Supreme Court said the builders cannot get away by handing over maintenance and administration of a housing society to the residents’ welfare association if the project remains unfinished without all infrastructure and facilities promised to the homebuyers and will need to compensate the RWAs.

Almost 18 years after a builder handed over a housing project in Noida to the residents' association, a bench of Justices Hemant Gupta and V Ramasubramanian directed the company, Padmini Infrastructure, to pay Rs 60 lakh to the Royal Garden RWA for not building a water softening plant, a second health club and a swimming pool in addition to putting in place a firefighting system. The real estate company constructed the housing project with 282 apartments and possession was given from 1998-2001. The purchasers formed an RWA and got it registered in 2003 under the Societies Registration Act. The RWA entered into an agreement on November 2003 with the builder for taking over maintenance of the apartment complex.

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