In a significant ruling, the Haryana Real Estate Regulatory Authority (HRera) has directed Godrej Real View Developers to pay an annual compensation of 10.8% to a couple from Lucknow for the delayed handover of their apartment in Gurgaon. The order underscores the authority's strict stance on builders failing to meet revised possession deadlines.
The Complaint and the Builder's Defense
The case was filed by Malik Ram and Sarita Verma, residents of Gomti Nagar in Lucknow. The couple had booked a second-floor flat in Tower 2 of Phase I at the Godrej Meridien-I project in Sector 106, Gurgaon, for approximately Rs 1.75 crore under a construction-linked payment plan. According to the sale agreement executed on September 27, 2019, the possession for Phase I was initially promised by September 30, 2020.
By May 2024, the allottees had paid nearly the entire sum of Rs 1.74 crore. HRera member Ashok Sangwan, presiding over the case, revised the due date to March 30, 2023, after granting a statutory six-month extension for the pandemic.
The developer, Godrej Real View, argued that the project faced unavoidable delays due to the nationwide Covid-19 lockdowns, subsequent labour shortages, cost escalations, and repeated construction bans imposed in the National Capital Region (NCR) to control pollution. The builder stated that the Occupation Certificate was obtained on March 31, 2023, with an offer of possession issued in May 2024. The conveyance deed was executed in November 2024, followed by physical possession being handed over on November 27, 2024.
HRera's Firm Rejection of Force Majeure Claims
The authority firmly rejected the developer's justifications. In its order, HRera held that beyond the already granted six-month Covid extension, the recurring seasonal pollution-related construction bans were foreseeable events and could not be invoked as fresh force majeure grounds to justify further delays.
The ruling found the promoter in violation of Section 11(4)(a) and Section 18(1) of the Real Estate (Regulation and Development) Act, 2016. It noted that the promoter failed to offer possession even by the revised deadline of March 30, 2023.
The Compensation Awarded to the Allottees
Consequently, HRera ruled that the allottees, having paid almost the full consideration, are entitled to monthly interest at the rate of 10.8% per annum. This compensation is to be calculated from the revised due date of March 30, 2023, until the permissible cut-off date linked to the eventual offer of possession.
This order sends a clear message to real estate developers in the NCR that regulatory bodies will not readily accept broad claims of force majeure for delays, especially when such events are seasonal and anticipated. It reinforces the power of RERA in protecting homebuyers' interests and ensuring accountability in the real estate sector.
