Haryana RERA Orders Signature Global To Pay Interest To Homebuyer For Delayed Possession, Also Held Sale Agreement Biased

Background Facts

On 27.10.2017, through a draw of lots, the homebuyer (Complainant) was allotted a flat in the builder's (Respondent) affordable housing project named The Millenia, located in Sector 37D, Gurugram, with a total sales price of Rs. 22,49,267/-.

Subsequently, on 04.12.2017, the homebuyer and builder entered into a Builder's Buyer Agreement, in which the builder promised to hand over possession of the flat within four years from the date of approval of the building plan or grant of environment clearance. Accordingly, the possession date of the flat was set for 21.02.2022.

The homebuyer contended that the builder's failure to complete and hand over the allotted flat within the stipulated period has caused them significant monetary loss, mental harassment, and humiliation.

They accused the builder of negligence, carelessness, and deceit, alleging that the builder made false assurances to induce investment, ultimately causing wrongful losses to the homebuyer while gaining wrongfully themselves.

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

Observation and Direction by Authority

The authority noted that the pre-set possession clause in the agreement was unfair to the homebuyer and favored the builder. Authority pointed out that the clause's unclear conditions required allottees to follow many rules, making even a small mistake cancel the possession agreement.

The authority observed that the builder violated Section 11(4)(a) of RERA, 2016 by not handing over possession by the date specified in the agreement. According to clause 5.1 of the agreement, the possession of the FLAT was to be delivered on 21.02.2022. Therefore, the respondent failed to fulfill its obligations and responsibilities as per the agreement to hand over possession within the stipulated period.

The Authority referred to Section 18(1) of the Real Estate Regulation and Development Act 2016, which states:

18. Return of amount and compensation.

(1) If the builder fails to complete or is unable to give possession of an apartment, plot, or building—

(a) in accordance with the terms of the agreement for sale or, as the case may be, duly completed by the date specified therein; or

(b) due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this Act or for any other reason, he shall be liable on demand to the homebuyers, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment, plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf including compensation in the manner as provided under this Act:

Provided that where an allottee does not intend to withdraw from the project, he shall be paid, by the builder, interest for every month of delay, till the handing over of the possession, at such rate as may be prescribed.

Therefore, the Authority directed the builder to pay the homebuyer interest for each month of delay from the due date of possession (21.02.2022) until the possession date (01.04.2023), plus an additional two months, at an interest rate of 10.85% per annum.

Case – Kiran Kumar Versus M/s Signature Global (India) Pvt. Ltd.

Citation - Complaint no. 7183 of 2022

Click Here ToRead/Download Order