 "Homebuyer awarded Rs 2.26 cr for 10-year delay in flat possession")
The Haryana Real Estate Regulatory Authority (RERA) recently ruled that a builder was liable to pay Rs 2.26 crore as compensation to a homebuyer who purchased a flat in 2013 for Rs 1.07 crore. When the flat was delayed, the homebuyer wanted to cancel the booking but was prevented twice and offered another flat in a different project. The homebuyer accepted the offer but that project was delayed for over a decade.
“The respondent (builder) has been holding the amount paid by the complainant from 2013 and kept on changing the units of the complainants from one project to the other project on account of non-completion of the projects. The amount paid by the complainants has also been shifted and adjusted from one project to another. Even after a delay of more than 10 years, no unit has been delivered by the respondent to the complainants (homebuyer) till date,” said Haryana RERA
Nidhi Singh, partner at IndiaLaw LLP legal firm, explained the case.
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There was a complaint filed by allottees of a flat in a residential project in Gurugram under the provisions of Section 31 of the Real Estate Regulation Act, 2016, read along with the necessary rules prescribed, on account of tremendous delay in handing over possession of the flat booked by the complainants/allottees in the year 2013, by the respondent/promoter.
Accordingly, the complainants/allottees sought a refund on the amount of total consideration paid by them to the respondent/promoter, which as per the complaint was a sum of Rs 1.7 crore. It was also requested that till such time the amount is refunded to the complainants/allottees, the respondent/promoter be restrained from creating any third party rights in the unit, and from either cancelling the allotment or raising any fresh payment demand.
“Haryana RERA is holding builders accountable for delays and unfulfilled promises using key provisions like Section 2(za), Rule 15, and Section 18(1). These rules ensure builders face penalties for non-compliance, including interest payments for delays. Citing a Delhi High Court precedent, RERA enforced a Rs 2.26 crore penalty, including Rs 1.07 crore as a refund and compensation, reinforcing consumer protection and punishing delays,” said Prachi Dubey, a lawyer at the Delhi High Court.
Chirag Gupta, associate partner at law firm Alpha Partners, explained what others can learn from this case.
The case serves as a precedent and a critical reminder to both promoters and allottees about their rights and obligations. Promoters must strictly adhere to contractual commitments, including delivery timelines, and ensure compliance with statutory provisions to avoid any legal consequences. Any deviation, delay, or failure to perform contractual obligations may lead to a legal action, including refund of amounts paid by allottees along with significant interest.
“For allottees, the case underscores the importance of being vigilant and exercising their rights under the Act in the event of non-compliance by (real estate companies') promoters,” Gupta said.