Haryana RERA Directs Builder To Hand Over Possession Of Flat To Homebuyers And Pay Interest For Possession Delay

Background Facts

The Homebuyers (Complainants) were allotted a flat unit in the project of the Builder (Respondent) named The Edge Towers at Sectors 37D, Gurugram through an allotment letter dated 17.08.2010, for a total sale consideration of Rs.43,56,850. Further, an Apartment Buyers Agreement (ABA) was executed between the Homebuyers and the Builder on 22.07.2010. As per clause 15(a) of the ABA, the builder had to deliver the possession of the apartment by 31.08.2012.

At the time of execution of the agreement, the Homebuyers had objected to the one-sided clauses of the agreement. However, the Builder turned down the concerns of the Homebuyers and informed that the terms and conditions in the agreement are standard clauses and thus, no change can be made to it.

Despite making substantial payments, the Homebuyers were denied site visits and received unsatisfactory responses about construction progress and possession. Builder failed to fulfill promised services as per agreements and advertisements. Aggrieved by the delay, Homebuyers filed a complaint before Haryana RERA seeking delay possession charges with interest at the prescribed rate from the date of application/payment to the realization of money under Section 18 & 19(4) of the act.

Contention by Builder

The Builder contended that the Homebuyers have already filed a complaint before the NCDRC, New Delhi, concerning property involved in the present complaint. Therefore, the principle of sub-judice applies to the present matter at hand, and hence the complaint is not maintainable before this Authority.

The Builder further contends that the Homebuyers are investors and not consumers. Therefore, they are not entitled to the protection of the Act and are not authorized to file a complaint before the authority under Section 31.

Observation and direction by Authority

Authority observed that upon careful perusal of all the terms and conditions of the apartment buyer's agreement, it is revealed that the Homebuyers are buyers and have paid a total price of Rs. 40,40,323 for the purchase of an apartment in the promoter's project.

The Authority referred to Section 2(d) of the Real Estate (Regulation and Development) Act, 2016, which reads as follows:

(d) “allottee” in relation to a real estate project, means the person to whom a plot, apartment or building, as the case may be, has been allotted, sold (whether as freehold or leasehold) or otherwise transferred by the promoter, and includes the person who subsequently acquires the said allotment through sale, transfer or otherwise but does not include a person to whom such plot, apartment or building, as the case may be, is given on rent.

The Authority further observed that the Homebuyer's complaint is maintainable, as the Homebuyer has filed an application before the NCDRC seeking withdrawal from the complaint, and the said request was allowed by the NCDRC, New Delhi, through an order dated 07.02.2024.

Therefore, the Authority directed the builder to pay interest to the Homebuyers against the paid-up amount at a rate of 10.85% per annum for every month of delay from the due date of possession, which was 31.08.2012, as per clause 15(a) of the ABA. Furthermore, the Authority directed the builder to hand over possession of the flat to the Homebuyer as per the ABA.

Case – Kapil Poddar and Renuka Poddar versus M/s Ramprastha Promoters & Developers Private Limited along with Shashikant Singh versus M/s Ramprastha Promoters & Developers Private Limited

Citation - Complaint Nos. and 3162 of 2023 & 4059 of 2023