Execution Of Conveyance Deed Doesn't End Builder Liability, Haryana RERA Directs Emaar MGF To Pay Interest To Homebuyer

Background Facts

On 26.04.2010, the original allottees booked a flat in the builder's (Builder) project named Palm Terraces, located in Sector 66, Gurugram, by paying ₹10,00,000. The total cost of the flat was ₹1,33,13,570.

On 26.07.2010, the builder and original allottees entered into a buyer's agreement. According to clause 14(a) of the agreement, the builder had to deliver possession within 36 months from the start of construction, with a 90-day grace period for obtaining the Occupation Certificate. Thus, the due date for possession was 26.07.2013.

Further, original allottees later transferred the unit to the current homebuyer, who paid the remaining amount as per the builder's demands. Despite fulfilling their financial obligations, the homebuyer faced significant delays in receiving possession of the flat.

As per homebuyer after numerous requests he finally received an offer of possession on 14.03.2019. However, the homebuyer contended that this offer included several unjustified and illegal demands not stipulated in the Buyer Agreement.

Further, homebuyer pointed out that the builder demanded excessive advance maintenance charges of ₹75,600, electric meter charges of ₹12,626, and electrification charges of ₹74,844, which were not in accordance with the agreement.

The homebuyer also claimed that despite multiple follow-ups, reminders, and clearing all dues while fulfilling all unilateral demands, the builder only executed the conveyance deed in their favor on 19.06.2019.

Aggrieved by these delays and the additional demands, the homebuyer filed a complaint before the authority seeking interest on delayed possession.

Observation and Direction

The authority observed that the term conveyance deed means that the builder has executed a document stating that all authority and ownership of the property in question have been transferred to the homebuyer.

The authority further observed that the execution of a conveyance deed does not mean that the builder's liabilities and obligations towards the flat have concluded.

The authority referred to their decision in the case of Varun Gupta v/s Emaar MGF Land Ltd. (4031 of 2019), where it was held that the execution of a conveyance deed does not conclude the relationship or mark an end to the liabilities and obligations of the promoter towards the subject unit.

Further, the authority observed that as per clause 14(a) of the Apartment Buyer agreement, the builder was obligated to hand over the possession of the flat by 24.03.2014. However, the homebuyer was provided offer of possession on 14.03.2019.

Therefore, Authority directed builder to pay interest to homebuyer at the rate of 11.10% p.a for delayed possession under section 18 of the RERA, 2016.

Case – Chanderkanta Oberoi & anr Versus M/s Emaar MGF Land Ltd.

Citation – Complaint no : 6632 of 2022

Date of order – 25.09.2024