Haryana RERA Orders Godrej to Pay 11% Interest for Delayed Flat Handover

Gurgaon: Haryana Real Estate Regulatory Authority (H-Rera) has issued a directive to Godrej Real View Developers to pay 10.8% annual compensation to a Lucknow couple for the delayed possession of their flat in Godrej Meridien-I, located in Sector 106. The order was passed by member Ashok Sangwan in response to a complaint filed by Malik Ram and Sarita Verma of Gomti Nagar, Lucknow, under Section 31 of the Real Estate (Regulation and Development) Act 2016.

The complaint stated that the couple had booked a second-floor flat in Tower 2 of Phase I for approximately Rs 1.75 crore under a construction-linked plan. By May 2024, they had paid nearly Rs 1.74 crore. According to the agreement for sale executed on September 27, 2019, possession of Phase I was supposed to be offered by September 30, 2020. However, H-Rera revised the due date to March 30, 2023, after granting a six-month extension due to the initial impact of the COVID-19 pandemic.

The developer, Godrej Real View Developers, argued that there was no significant delay and that the project was affected by nationwide lockdowns, labor shortages, cost escalations, and repeated construction bans in the National Capital Region (NCR). They claimed that the occupation certificate was obtained on March 31, 2023, and an offer of possession was issued in May 2024. The conveyance deed was executed in November 2024, and physical possession was finally handed over on November 27, 2024.

However, H-Rera rejected these justifications. The authority ruled that beyond the six-month COVID-19 extension already granted through notification, the recurring seasonal pollution-related curbs were foreseeable and could not be invoked as fresh force majeure grounds. The order noted that the promoter failed to offer possession by the revised deadline, thus violating sections 11(4)(a) and 18(1) of the RERA.

H-Rera concluded that the allottees, who had paid nearly the entire consideration, were entitled to monthly interest from March 30, 2023, until the permissible cut-off linked to possession. The authority's decision underscores the importance of adhering to the timelines and obligations stipulated under the RERA, ensuring that buyers are not unfairly penalized for delays beyond their control.

This ruling is a significant victory for homebuyers and sets a precedent for future cases where developers may attempt to cite unforeseen circumstances as grounds for delay. It emphasizes the need for transparency and accountability in the real estate sector, particularly in the context of regulatory frameworks like RERA, which aim to protect the interests of consumers and maintain market integrity.