Emaar MGF found guilty of profiteering, to refund Rs 13 cr to homebuyers

The National Anti Profiteering Authority has ruled that the realty firm has benefited from additional input tax credit

GST anti-profiteering authority has found real estate firm Emaar MGF guilty of profiteering of Rs 13.35 crore and directed it to return the amount to 1,239 homebuyers with 18 per cent interest.

The National Anti Profiteering Authority (NAA) has ruled that the realty firm has benefited from additional input tax credit (ITC), which is 11.90 per cent of turnover between July 2017 and March 2019.

Based on a complaint filed by a home buyer in Emerald Floor Premier project and an investigation report of Directorate General of Anti Profiteeeing (DGAP), the NAA in its ruling said Emaar MGF has Profiteered an amount of Rs 13.35 crore.

"The Respondent (Emaar MGF) is directed for pass on an amount of Rs 13,35,79,636 and the amount of Rs 1,04,734 ..... along with interest @18 per cent annum from the dates from which the above amount was collected by him from them (homebuyers of Emerald Floors Premier Project) till the payment is made, within a period of 3 months from the date of passing this order," the NAA said.

It has also asked the realty firm to reduce the prices of flats in Emerald Floors Premier commensurate with the benefit of ITC received.
 

The NAA has also said that a show cause notice would be issued to Emaar MGF, directing him to explain why penalty under GST rules should not be imposed on the firm.