Haryana RERA Orders Builder To Pay Interest To Homebuyer For Delay Of Over Four Years In Handing Over Possession

Background Facts

The Homebuyers were allotted a plot in the project of the builder named Raheja Aranya City Phase 2, located in Sector 11 & 14, Sohna, Gurugram, as per an allotment letter dated 06.10.2016. Subsequently, an agreement to sell was executed between the parties on the same date, with a basic sale price of Rs. 1,14,14,959/-. An amount of Rs. 1,02,53,336/- was paid by the Homebuyers until 11.06.2019.

As per Clause 4.2 of the buyer's agreement, the builder was mandated to offer possession before 06.10.2019. However, despite more than three years passing from the due date of possession, the Homebuyers have yet to receive possession of the plot.

Furthermore, the Homebuyers visited the builder's office numerous times, seeking possession and requesting progress updates on the project. Unfortunately, the builder consistently provided false assurances regarding the completion of the plot. Over the past six years, the builder has repeatedly made false assurances regarding possession of the plot. Despite having taken over 80% of the total sale consideration, the current status of the project remains unclear and undeveloped.

Aggrieved by the delay, the Homebuyers filed a complaint before the authority seeking possession of the unit and interest for the delay.

Observation and direction by Authority

The authority observed that Clause 4.2 of the agreement for sale, which stipulates the possession clause, heavily Favors the promoter over the allottee. This clause is vague and uncertain, making it difficult for the allottee to determine their rights and obligations. Specifically, it mandates possession subject to the provision of necessary infrastructure by the government, force majeure conditions, or actions by government/regulatory authorities beyond the control of the seller.

The authority further observes that despite more than 4.1 years passing, neither the construction is complete nor has the builder made an offer of possession of the allotted plot to the allottee. Additionally, there is no document on record from which it can be ascertained whether the builder has applied for a completion certificate/part completion certificate or what is the status of construction of the project.

Therefore, the Authority directed the builder to pay interest to the Homebuyers at a rate of 10.85% per annum for each month of delay from the due date of possession, i.e., 06.04.2020, until the issuance of a valid offer of possession, plus an additional 2 months after obtaining the completion certificate/part completion certificate from the competent authority, as per section 18(1) of the Real Estate (Regulation and Development) Act, 2016.

Case – Pranshu Dutt & another Versus M/s Raheja Developers Limited

Citation - Complaint No. 455 of 2023