Haryana RERA Orders Raheja Developers To Pay Interest To Homebuyer For Delayed Possession

Background Facts

The homebuyers (Complainants) booked a flat measuring 2062 sq. ft. in the builder's (Respondent) project, “Raheja Shilas,” located in Sector-109, Gurugram, by paying an amount of Rs. 5,73,762. The total consideration for the flat was Rs. 73,91,750/-.

On 14.06.2010, the builder issued an allotment letter in favor of the homebuyers. On the same date, the homebuyers also entered into a flat buyer's agreement with the builder. According to the homebuyers, this agreement was standardized, one-sided, and unfavorable, leaving no room for negotiation and compelling them to accept its terms to avoid forfeiture of the booking amount.

According to the agreement, possession was to be handed over within 30 months from the execution date, setting December 2012 as the Possession date. However, the builder failed to deliver possession on the promised timeframe.

The homebuyers contended that Clause 4.2 of the agreement stipulated compensation for delays at Rs. 7 per sq. ft. of super area per month. Despite this, the builder neither completed the unit by December 2012 nor provided any justification for the prolonged delay, which now exceeds 10.5 years.

Aggrieved by the builder's failure to deliver the flat and the significant delay, the homebuyers filed a complaint before the authority seeking possession and interest for delayed possession.

Observation and Direction by Authority

The Authority referred to Clause 4.2 of the flat buyer agreement, which stipulated that the builder would aim to hand over possession of the apartment within 36 months for towers and 30 months for independent floors, starting from the date of agreement execution contingent on government-provided infrastructure.

The Authority observed that the possession clause in the agreement was overly one-sided, heavily favouring the builder. By including vague conditions such as the requirement for government-provided infrastructure and broad force majeure provisions the builder effectively reduced its obligation to deliver possession within a clear timeframe.

The Authority held that, by virtue of Clause 4.2, the builder was required to hand over possession of the flat by 14.12.2012. However, the builder has failed to do so to date.

Therefore, under the provisions of Section 18(1) of RERA, 2016, the homebuyer is entitled to receive delay possession charges from the possession date until the actual handing over of possession, or until the offer of possession plus two months, whichever is earlier, at an interest rate of 11.10%.

Case – Dharampal Singh & anr Versus M/s Raheja Developers Limited

Citation – Complaint No : 2385 of 2023

Date of order – 24.10.2024