Rajasthan RERA awards ₹1 lakh compensation to homebuyers after a promoter retained their ₹1.45 lakh booking amount for years, highlighting buyers’ rights to refund and compensation under RERA.
Case Name: Seema Devi & Ors. v. Ravi Surya Affordable Homes Pvt. Ltd.
Case No.: Complaint No. RAJ-RERA-C-O-2024-7211
Citation: 2026 LLBiz RERA (RJ) 140
Authority: Rajasthan Real Estate Regulatory Authority
Date of Order: 16 September 2026
The Rajasthan Real Estate Regulatory Authority (Rajasthan RERA) has held that a promoter cannot retain a homebuyer’s booking amount for years after cancellation of an allotment without making an appropriate refund. In a significant order concerning the Surya Residency project, the Authority awarded ₹1 lakh as compensation to the homebuyers after finding that their booking amount of ₹1.45 lakh had remained with the promoter for several years.
The decision highlights the importance of timely refund of amounts collected from homebuyers and recognises the financial consequences suffered when a promoter continues to retain a buyer’s money after cancellation of the allotment.
Background of the Case
The complainants had booked Flat E-605 in the Surya Residency project on 19 July 2018 by paying a booking amount of ₹1.45 lakh. An allotment letter was subsequently issued by Ravi Surya Affordable Homes Pvt. Ltd. on 24 July 2018, with the total sale consideration fixed at approximately ₹14.54 lakh.
According to the homebuyers, they intended to finance the purchase through a bank loan and therefore requested execution of an agreement for sale. However, the agreement was not executed, and the project was also not completed as expected. The booking amount was not refunded.
The promoter, on the other hand, maintained that the agreement could not be executed because the buyers failed to execute it and did not pay the remaining sale consideration despite repeated demands.
Ultimately, the promoter cancelled the provisional allotment on 25 July 2022, nearly four years after the original booking.
Earlier RERA Proceedings
The homebuyers initially approached Rajasthan RERA seeking a refund of their booking amount. However, on 25 September 2024, their complaint was dismissed. The Authority at that stage observed that the buyers had paid only around 10% of the total sale consideration and therefore were not entitled to either possession or refund.
The buyers challenged this decision before the Rajasthan Real Estate Appellate Tribunal (REAT).
On 28 October 2025, the REAT took a different view on the refund issue. It found contributory negligence on the part of both sides and directed the promoter to refund the entire principal booking amount of ₹1.45 lakh, although without interest.
Following this order, the homebuyers approached the Adjudicating Officer seeking compensation for the prolonged retention of their money.
Homebuyers’ Claim for Compensation
The complainants argued that their ₹1.45 lakh had remained with the promoter since 2018. During this period, they neither received possession of the flat nor obtained the benefit of their deposited money.
They therefore sought compensation for the financial loss suffered as a consequence of the promoter retaining the amount. They also claimed compensation for physical and mental agony and litigation expenses.
The promoter opposed the claim, contending that the buyers themselves had failed to make the required payments and had not complied with demands for further consideration. According to the promoter, the buyers should therefore not be permitted to claim compensation.
Rajasthan RERA’s Findings
The Adjudicating Officer, R.S. Kulhari, examined the circumstances surrounding the retention of the booking amount.
The Authority observed that once the allotment had been cancelled, the promoter was expected to refund the amount after making any permissible deduction towards administrative charges. However, there had been no effective communication establishing such a deduction.
The Authority also noted that the promoter had continued to utilise the money after cancellation, while the homebuyers remained deprived of the same amount.
Importantly, the Authority treated the issue of compensation separately from the question of whether the homebuyers had themselves contributed to the failure of the transaction.
According to the Authority, the fact that the buyers had deposited only the booking amount did not completely eliminate the financial consequences arising from prolonged retention of their money.
₹1 Lakh Compensation Awarded
The Adjudicating Officer concluded that some reasonable compensation was warranted because the promoter had retained the ₹1.45 lakh for approximately eight years.
The Authority reasoned that continued retention of the amount caused a tangible financial loss to the complainants while providing an economic benefit to the promoter. If compensation were denied altogether, the promoter would effectively retain the benefit of the funds without compensating the homebuyers for the period during which they were deprived of their money.
At the same time, the Authority recognised that this was not a case where the purchasers had deposited a substantial portion of the property’s sale consideration.
Accordingly, compensation was assessed at ₹80,000 towards financial loss. A further ₹20,000 was awarded towards physical and mental agony and litigation costs.
The total compensation therefore amounted to ₹1 lakh.
The promoter was directed to pay the compensation within 45 days. In case of failure to make payment within the prescribed period, the amount would carry 6% annual interest from 16 September 2026 until payment.
Key Takeaway for Homebuyers and Promoters
The Rajasthan RERA ruling reinforces an important principle in real estate transactions: retention of a homebuyer’s money cannot be viewed in isolation from the financial loss caused by prolonged deprivation of that money.
Where an allotment is cancelled and the booking amount is required to be returned, prolonged retention may expose the promoter to a claim for compensation, depending on the facts and circumstances.
For homebuyers, the decision demonstrates that a claim may not necessarily end with recovery of the principal amount. Where prolonged retention results in demonstrable financial loss or other legally recognised hardship, compensation may also be sought under the RERA framework.
For promoters, the ruling underlines the importance of maintaining clear documentation concerning cancellation, refund calculations, permissible deductions and communications with allottees.
Conclusion
The Seema Devi & Ors. v. Ravi Surya Affordable Homes Pvt. Ltd. decision is significant for its treatment of compensation following prolonged retention of a booking amount. Although the homebuyers and promoter were both found to have contributed to the difficulties surrounding the transaction, the Rajasthan RERA ultimately recognised that the promoter’s continued retention of ₹1.45 lakh for several years had financial consequences for the buyers.
The award of ₹1 lakh compensation therefore illustrates that refund disputes under RERA can involve not merely recovery of the principal amount, but also consideration of the financial loss and hardship resulting from prolonged retention of a homebuyer’s funds.