(Complaint No. 455 of 2023)

“Haryana RERA Orders Builder to Compensate Homebuyer with Interest for Over Four-Year Delay in Handover”

A bench of the Haryana Real Estate Regulatory Authority (Authority), including Member Ashok Sangwan, has ordered the builder to compensate homebuyers for a delay of over 4.1 years in handing over possession of the flat, which was originally due on April 6, 2020.

What is Haryana Rera?

The Haryana Real Estate Regulatory Authority (Haryana RERA) was established under the Real Estate (Regulation and Development) Act of 2016. Its objectives include regulating and ensuring transparency, efficiency, and oversight in Haryana’s real estate sector.

Haryana Rera Act:

The Haryana RERA Act, enacted in accordance with the government’s RERA Act, oversees and promotes the state’s real estate sector. It requires the registration of real estate projects and their agents, the disclosure of project information, and the adherence to project deadlines.

Key Features:

Transparency: Haryana RERA promotes transparency by requiring developers to provide accurate project details, including clearances, schedules, and financial information.

Consumer Protection: It safeguards homeowners’ interests by enforcing fair business practices, ensuring timely project completion, and offering a grievance redressal system for dispute resolution.

Project Registration: Developers must register their projects with Haryana RERA before promoting, selling, or publicizing them.

Agent Registration: Real estate brokers in Haryana must register with Haryana RERA to promote transparent transactions and protect customer interests.

Facts of the Case:

The homebuyers were allotted a plot in the builder’s project, Raheja Aranya City Phase 2, located in Sector 11 & 14, Sohna, Gurugram, according to an allotment letter dated October 6, 2016. On the same date, a sale agreement was executed between the parties with a basic sale price of Rs. 1,14,14,959/-. By June 11, 2019, the homebuyers had paid Rs. 1,02,53,336/-.

According to Clause 4.2 of the buyer’s agreement, the builder was required to offer possession by October 6, 2019. However, more than three years past the due date, the homebuyers still have not received possession of the plot.

The homebuyers visited the builder’s office numerous times, seeking possession and requesting progress updates on the project. Unfortunately, the builder consistently provided false assurances about the plot’s completion. Over the past six years, the builder has repeatedly made false promises regarding possession. Despite having received over 80% of the total sale consideration, the project’s current status remains unclear and undeveloped.

Aggrieved by the delay, the homebuyers lodged a complaint with the authority, requesting possession of the unit and compensation in the form of interest for the delay.

Directions Issued:

The authority noted that Clause 4.2 of the sale agreement, which outlines the possession terms, heavily favors the promoter over the allottee. This clause is vague and ambiguous, making it challenging for the allottee to understand their rights and obligations. It stipulates that possession is contingent on the provision of necessary infrastructure by the government, force majeure conditions, or actions by government or regulatory authorities beyond the seller’s control.

The authority also notes that over 4.1 years have elapsed without the completion of construction or the builder offering possession of the allotted plot to the allottee. Furthermore, there is no documentation available to determine whether the builder has applied for a completion certificate or part completion certificate, or to ascertain the current status of the project’s construction.

As a result, the Authority ordered the builder to compensate the homebuyers with interest at a rate of 10.85% per annum for every month of delay from the possession due date of April 6, 2020, until the builder provides a valid offer of possession. Additionally, the builder must continue paying interest for an additional 2 months after obtaining the completion certificate or part completion certificate from the relevant authority, in accordance with the section 18(1) of the Real Estate (Regulation and Development) Act, 2016.

~Arisha Qureshi (Legal Intern)

Leave a Reply

Your email address will not be published. Required fields are marked *

This field is required.

This field is required.


The following disclaimer governs the use of this website (“Website”) and the services provided by the Law offices of Kr. Vivek Tanwar Advocate & Associates in accordance with the laws of India. By accessing or using this Website, you acknowledge and agree to the terms and conditions stated in this disclaimer.

The information provided on this Website is for general informational purposes only and should not be considered as legal advice or relied upon as such. The content of this Website is not intended to create, and receipt of it does not constitute, an attorney-client relationship between you and the Law Firm. Any reliance on the information provided on this Website is done at your own risk.

The Law Firm makes no representations or warranties of any kind, express or implied, regarding the accuracy, completeness, reliability, or suitability of the information contained on this Website.

The Law Firm disclaims all liability for any errors or omissions in the content of this Website or for any actions taken in reliance on the information provided herein. The information contained in this website, should not be construed as an act of solicitation of work or advertisement in any manner.