RERA Enforcement Intensifies as Haryana Authority Orders ₹17.73 Lakh Refund Including Interest for Cash Transaction

The Haryana Real Estate Regulatory Authority has directed a Panipat-based developer to return ₹10 lakh in cash payment along with ₹7.73 lakh in interest to a homebuyer, while simultaneously referring the matter to the Income Tax Department for investigation into potential black money violations.

Homebuyer Receives Justice Despite Builder's Denial

Jasvir Singh, the aggrieved homebuyer, had reportedly made a dual payment structure for his flat booking - ₹1.18 lakh through cheque and an additional ₹10 lakh in cash. The developer had provided Singh with a handwritten receipt that bore an official stamp and signature acknowledging the cash payment, according to RERA findings.

The authority noted that while the builder promptly refunded the cheque amount, the cash component remained unreturned. The developer subsequently claimed that the cash receipt was forged and denied receiving any such payment, creating a dispute that required regulatory intervention.

Forensic Evidence Points to Authenticity

RERA's investigation revealed that the disputed cash receipt carried the same official stamp that appeared on the acknowledged cheque payment receipt. The authority found the builder's cooperation lacking when he refused to provide a signature sample for forensic verification, which raised questions about his credibility in the matter.

The regulatory body determined that the evidence supported the homebuyer's claim and indicated that the developer had misused his dominant market position to avoid fulfilling his refund obligations.

Financial Penalties and Tax Department Referral

Beyond ordering the full ₹10 lakh refund, RERA imposed additional interest calculated at 10.9% annually on the cash amount. This brought the total liability to approximately ₹17.73 lakh, demonstrating the authority's commitment to ensuring adequate compensation for aggrieved homebuyers.

The case has also been forwarded to the Income Tax Department for further scrutiny, as the ₹10 lakh cash transaction exceeded the ₹2 lakh threshold that mandates reporting under India's anti-black money regulations. This referral highlights how RERA's buyer protection mechanisms now work in coordination with tax authorities to combat illicit financial practices.

Strengthening Real Estate Transparency Framework

This enforcement action represents Haryana RERA's intensified efforts to eliminate cash-based transactions in the real estate sector. The order sends a clear message that regulatory authorities will not tolerate opaque financial dealings that undermine market transparency and consumer protection.

The decision reinforces how RERA regulations provide legal safety for property buyers across different states. Industry experts suggest that such decisive actions will encourage developers to maintain transparent financial practices and strengthen homebuyer confidence in the regulated real estate market.

The ruling also demonstrates how modern real estate regulations are evolving to address complex scenarios involving cash transactions, ensuring that RERA continues driving market recovery through enhanced accountability measures.