Haryana RERA - No Additional Compensation To Homebuyer When Interest For Delayed Possession Already Granted

Update: 2024-12-10 08:30 GMT
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Haryana Real Estate Regulatory Authority (Authority) Bench comprising Rajender Kumar (Adjudicating Officer) dismissed the homebuyer's complaint against M/s. Emaar MGF Land Limited seeking additional compensation. Authority held that no additional compensation can be granted to the homebuyer when delay possession compensation has already been granted along with interest under Section...

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Haryana Real Estate Regulatory Authority (Authority) Bench comprising Rajender Kumar (Adjudicating Officer) dismissed the homebuyer's complaint against M/s. Emaar MGF Land Limited seeking additional compensation.

Authority held that no additional compensation can be granted to the homebuyer when delay possession compensation has already been granted along with interest under Section 18(1) of the RERA, 2016.

Background Facts

Homebuyer (Complainant) purchased a flat in the builder's (Respondent) project named Emerald Estate situated in Sector 65, Gurugram from former allottees on October 5, 2012 and paid Rs. 47,10,808 for the flat.

According to clause 11(a) of the agreement the homebuyer was supposed to get possession of the flat within 36 months from the start of construction (by February 26, 2014). However, the homebuyer received the offer of possession on April 23, 2018 after a delay of 4 years.

Being aggrieved homebuyer filed a complaint before the authority seeking interest for the delay. Through its order dated December 11, 2018, the authority directed the builder to pay interest to the homebuyer at 10.75% per annum for every month of delay.

Subsequently, the homebuyer filed an application before the adjudicating officer of the authority seeking compensation on the grounds that they suffered due to the malafide acts of the builder. The homebuyer sought Rs. 5 lakhs for deficiency in service, Rs. 5 lakhs for mental harassment, Rs. 16.8 lakhs for loss of opportunity, and Rs. 1 lakh for legal expenses.

Observation and Direction by Authority

The authority observed that the proviso of Section 18 of the Real Estate (Regulation and Development) Act, 2016 states that if a homebuyer does not intend to withdraw from the project, the builder shall pay interest for every month of delay until possession is handed over at a prescribed rate.

From this provision it is clear that when a homebuyer chooses not to withdraw from the project, they are entitled to receive interest for each month of delay until possession is handed over.

The authority held that there is no reason to allow additional compensation when the delay possession compensation has already been granted along with interest. Therefore, the adjudicating officer dismissed the complaint of the homebuyer.

Case – Mr. Raghav Manocha & Abhinav Manocha Versus M/s. Emaar MGF Land Limited

Citation – Complaint No: 13 of 2024

Date – 20 November

Click Here To Read/Download The Order 

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