9-Year Delay In Handing Over Possession, Haryana RERA Orders Builder To Pay Interest To Homebuyer

Background Facts

A homebuyer (Complainant) booked a flat in the builder's (Respondent) project named Capital Gateway, located in Sector 111, Gurugram, by making an initial payment of Rs. 26,06,687/- out of the total sale consideration of Rs. 1,23,71,222/-.

On 12.02.2013, a builder-buyer agreement was executed between the homebuyer and the builder. According to clause 2.1 of the agreement, the builder was supposed to hand over possession of the flat within 36 months from the date of the building plan's sanction.

The homebuyer contended that they opted for the construction-linked plan to purchase the flat, under which they made payments of Rs. 1,28,57,481/- in stages as construction progressed to the builder.

Despite receiving the total payment for the flat, the builder failed to hand over possession of the flat within the promised time. Additionally, the homebuyer claimed that the builder revised the building plan, increasing the flat's super area from 2675 sq. ft. to 2990 sq. ft.

Aggrieved by the delay, the homebuyer filed a complaint before the authority, seeking possession of the flat and interest for the delayed possession.

Observation and Direction by Authority

The Authority referred to Clause 2.1 of the Builder Buyer Agreement, which stipulated that the builder would hand over possession within 36 months of the plan's sanction, provided the homebuyer makes timely payments and complies with all agreement terms.

The Authority observed that the possession clause in the builder-buyer agreement was unfair to the homebuyer and favored the builder. The Authority pointed out that the clause's unclear conditions required homebuyer to adhere to numerous rules, where even a small mistake could cancel the possession agreement.

Further, the Authority observed that as per clause 2.1 of the agreement, the builder was supposed to hand over possession of the flat within 36 months from the date the building plan was sanctioned. Since the building plan was sanctioned on 07.06.2012, the builder was obligated to hand over possession by 07.06.2015. Therefore, the homebuyer is entitled to receive interest for delayed possession from the builder under Section 18(1) of the RERA, 2016.

Therefore, the authority directed the builder to pay interest to the homebuyer for the 9-year delay in handing over possession of the flat at 10.96% per annum.

Case – Gulshan Dua Versus M/s Tashee Land Developers Pvt. Ltd. & another

Citation - Complaint no: 4324 of 2023