Homebuyer Receives Rs 2.26 Crore Compensation for 10-Year Delay in Flat Possession
The Haryana Real Estate Regulatory Authority (RERA) has ruled that a builder must pay Rs 2.26 crore as compensation to a homebuyer for a 10-year delay in flat possession. This case highlights the importance of builder accountability and consumer protectio
Real EstateReraHomebuyerCompensationLegal RightsReal Estate NewsJan 23, 2025
The homebuyer faced significant delays in receiving the flat and was even prevented from canceling the booking twice.
The builder offered a different flat in another project, but that too saw a delay of over a decade.
Haryana RERA stated, “The respondent (builder) has been holding the amount paid by the complainant from 2013 and kept on changing the units of the complainants from one project to the other project on account of non-completion of the projects.
The amount paid by the complainants has also been shifted and adjusted from one project to another.
Even after a delay of more than 10 years, no unit has been delivered by the respondent to the complainants (homebuyer) till date.”
Nidhi Singh, a partner at IndiaLaw LLP, explained the legal context of the case.
The allottees of a flat in a residential project in Gurugram filed a complaint under the provisions of Section 31 of the Real Estate Regulation Act, 2016.
The complaint highlighted the significant delay in handing over possession of the flat, which was booked in 2013.
The allottees sought a refund of the total consideration paid, amounting to Rs 1.7 crore.
They also requested that the builder be restrained from creating any third-party rights in the unit and from canceling the allotment or demanding additional payments.
Prachi Dubey, a lawyer at the Delhi High Court, noted, “Haryana RERA is holding builders accountable for delays and unfulfilled promises using key provisions like Section 2(za), Rule 15, and Section 18(1).
These rules ensure builders face penalties for non-compliance, including interest payments for delays.
Citing a Delhi High Court precedent, RERA enforced a Rs 2.26 crore penalty, including Rs 1.07 crore as a refund and compensation, reinforcing consumer protection and punishing delays.”
Chirag Gupta, an associate partner at law firm Alpha Partners, highlighted the broader implications of the case.
“The case serves as a precedent and a critical reminder to both promoters and allottees about their rights and obligations.
Promoters must strictly adhere to contractual commitments, including delivery timelines, and ensure compliance with statutory provisions to avoid legal consequences.
Any deviation, delay, or failure to perform contractual obligations may lead to legal action, including refunds of amounts paid by allottees along with significant interest.”
For homebuyers, the case underscores the importance of being vigilant and exercising their rights under the Act in the event of non-compliance by real estate companies.
It is crucial to stay informed about legal protections and to take timely action to protect one's interests.
About Haryana RERAHaryana RERA (Haryana Real Estate Regulatory Authority) is a regulatory body established under the Real Estate (Regulation and Development) Act, 2016.
It aims to protect the interests of homebuyers and promote a transparent, fair, and accountable real estate market in Haryana.
The authority ensures that builders adhere to regulations and provides a platform for resolving disputes between homebuyers and builders.
Frequently Asked Questions
What is the Real Estate (Regulation and Development) Act, 2016?
The Real Estate (Regulation and Development) Act, 2016, is a law enacted by the Indian government to regulate the real estate sector. It aims to protect homebuyers, ensure timely completion of projects, and promote transparency and accountability among builders.
How much compensation was the homebuyer awarded?
The homebuyer was awarded Rs 2.26 crore as compensation for a delay of over 10 years in flat possession.
What sections of the Act were cited in the case?
The case cited provisions like Section 2(za), Rule 15, and Section 18(1) of the Real Estate (Regulation and Development) Act, 2016.
Who is Haryana RERA?
Haryana RERA (Haryana Real Estate Regulatory Authority) is a regulatory body established under the Real Estate (Regulation and Development) Act, 2016. It protects homebuyers' interests and ensures builders adhere to regulations.
What lesson can homebuyers learn from this case?
Homebuyers should be vigilant about their rights under the Act and take timely legal action if builders fail to comply with their contractual obligations.
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