Victory for Homebuyers: Haryana RERA Orders Compensation for Decade-Long Delay in Gurugram Project

Imagine saving for years and finally booking a flat that you wish to turn into that ‘dream home’ you have long wished for, only to realize that living in your own house still looks like a distant dream. This is the story of several buyers who booked their flats in the Capital Gateway housing project in Gurugram’s Sector 111, which has faced long delays.

Several homebuyers of the project even held a protest at the project site in December last year, urging the Haryana Real Estate Regulatory Authority (HRERA) to review the approvals, have time-bound hearings, and ensure strict enforcement of provisions. Now, two buyers, who have been waiting to get the possession of their units for over a decade, despite paying Rs 1.8 crore for the booking, have finally received some relief from HRERA, which has directed the builder to pay 10.8% annual interest for the delay in handing over possession.

HRERA, in its April 7 order, ruled in favor of two allottees who had lodged a complaint against M/s KNS Infracon Pvt Ltd and its associate developer in the Capital Gateway project. They had booked a 2,675 sq ft flat each, paid over Rs 1.8 crore. However, the builder “unilaterally and unauthorizedly” increased the super area of the booked dwelling unit by 315 sq ft and demanded Rs 14,40,809.

In their complaint, the buyers mentioned that they “came to know about the fact that the respondents had no intention to deliver the project and was dragging their feet by indulging into delaying and dilatory tactics unfairly to fleece the complainant not caring for completing the project in the promised time span.” According to the builder-buyer agreement dated February 11, 2015, the project was to be completed within 36 months from the date of sanction of the building plans of the said residential project. The complaint stated that the due date of delivery of possession was June 7, 2015.

In its order, HRERA noted that the respondents (builders) failed to file a reply or even appear before it despite notices to them. On the basis of the material on record, the authority held that the developer had violated Section 11(4)(a) of the RERA Act, which requires promoters to complete projects and hand over possession on time.

Haryana RERA has directed the builder to pay interest to the complainants against the paid-up amount at the prescribed rate of 10.80% per annum for every month of delay from the due date of possession, i.e., June 7, 2015, till the offer of possession plus 2 months or actual handing over of possession, whichever is earlier. The regulatory body explained that the marginal cost of lending rate (MCLR) as of the date (June 7, 2026) on the SBI website is 8.80%. Accordingly, the prescribed rate of interest will be marginal cost of lending rate +2% i.e., 10.80%.

It also ordered the developer to clear the arrears within 90 days, issue an updated statement of account, and not levy any charge not provided for in the buyer’s agreement. HRERA has also asked the developer to pay the complainants Rs 50,000 towards litigation costs.

This ruling is a significant win for homebuyers who have been struggling with project delays and unscrupulous builders. It sets a precedent for stricter enforcement of RERA provisions and ensures that developers are held accountable for their actions. Homebuyers can now have more confidence in the regulatory framework designed to protect their interests and ensure timely project completion.