Haryana RERA Directs Tashee Land Developers To Pay Interest To Homebuyer, Also Held Possession Clause Biased

Background Facts

Through the Flat Buyer's Agreement dated 02.09.2016, the homebuyer (Complainant) was allotted a flat of 3,350 sq. ft. with one car parking space in the builder's (Respondent) project named Capital Gateway, situated in Sector 111, Gurugram.

The total sale consideration of the flat was Rs. 2,23,54,440, of which the homebuyer paid Rs. 1,85,95,000 to the builder. According to Clause 2.1 of the agreement, the builder was supposed to hand over possession of the flat within 54 months from the date the building plans and other government approvals were sanctioned.

The homebuyer visited the project site multiple times and observed that construction was progressing very slowly. They raised their concerns with the builder's office, where they were informed that the project was unlikely to be completed within the prescribed timeline. Despite this, the builder assured them that possession of the flat would be delivered according to the buyer's agreement.

The homebuyer also contended that it was agreed by both parties that possession would be delivered by December 2016. However, to date, possession has not been delivered. Therefore, feeling 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 Flat Buyer's Agreement, which stipulated that the builder would hand over possession of the flat within 48 months from the date of approval of the building plans, with an additional 180 days to obtain the Occupancy Certificate (OC).

The Authority observed that Clause 2.1 was heavily biased in favor of the builder, containing vague and uncertain conditions that made it difficult for homebuyer to meet all required formalities and documentation. The clause was so uncertain that even a single default by the homebuyer could render the possession terms irrelevant, making the promise of timely possession meaningless.

The Authority also noted that the builder violated Section 11(4)(a) of RERA, 2016, which outlines the functions and duties of the builder, by failing to hand over possession of the flat within the stipulated timeframe. Therefore, the homebuyer is entitled to receive interest for every month of delay under Section 18(1) of RERA, 2016.

As a result, the Authority directed the builder to pay interest on the amount paid by the homebuyer (Rs. 1,85,95,000) at an interest rate of 11% per annum for every month of delay from the possession date (17.12.2017) until the date the builder makes a valid offer of possession, plus an additional two months.

Case – Amit Tiwari & anr Versus M/s Tashee Land Developers Private Limited & anr

Citation - Complaint No. 929 of 2023