Haryana RERA Slaps Developer with Rs 77.6 Lakh Compensation Order for Gurgaon Flat Delay
In a landmark decision, the Haryana Real Estate Regulatory Authority (HRera) has mandated a developer to compensate a homebuyer couple with over Rs 77 lakh for significant delays and failures in a high-profile Gurgaon project. This ruling, issued after fourteen years of regulatory oversight, underscores the enforcement of consumer protections under real estate laws.
Details of the Case and Developer's Failures
The case involves Parsvnath Hessa Developers and the Parsvnath Exotica project located on Golf Course Road in sectors 53-54. Adjudicating officer Rajender Kumar pronounced the order on Tuesday, following a complaint filed under Section 31 of the Real Estate (Regulation and Development) Act, 2016.
Key issues highlighted in the complaint include:
- A delay of over three years in handing over possession of the apartment.
- Abandonment of construction for a period of four years.
- Failure to obtain an occupation certificate despite repeated demands from the buyers.
The couple, Raj Kumar Chawla and Indu Chawla, residents of DLF II, had booked a 3,390 square foot flat on September 3, 2012, for Rs 3.4 crore. They paid Rs 1.5 crore, which included adjustments from a prior memorandum of understanding for cancelled shops, with possession originally due by January 3, 2015. However, possession was only given on March 23, 2018, and even then, the necessary occupancy certificates were not provided.
RERA's Ruling and Compensation Breakdown
RERA upheld the allottees' rights under Section 18(1) of the RERA Act, emphasizing that "promoters cannot force endless waits" after payment. The authority directed Parsvnath Developers to pay Rs 77.6 lakh as compensation for loss of profit and an additional Rs 50,000 towards litigation costs.
The compensation calculation was based on:
- Loss of profit due to property value escalation, with similar units now fetching between Rs 4.3 crore and Rs 8 crore according to recent sale deeds.
- Awarding 50% appreciation on the invested sum of Rs 1.5 crore, totaling Rs 77.6 lakh.
- Rejection of excessive claims, including extra interest of 6% and Rs 1 crore for mental agony, deeming them as overreaching.
Additionally, RERA cited a Supreme Court precedent in the IREO Grace Realtech vs Abhishek Khanna case from 2021 to support the decision. The order also includes a directive for the refund of Rs 1.5 crore plus 10% interest under Rule 15 of the Haryana RERA Rules, 2017, with payments due immediately along with 10.85% interest from the order date.
Implications for Real Estate Sector and Homebuyers
This ruling sends a strong message to developers about adhering to timelines and legal obligations. It reinforces RERA's role in protecting homebuyers from unfair practices and delays in the real estate market. The case highlights the importance of regulatory bodies in ensuring accountability and providing recourse for affected consumers.
With such decisions, RERA continues to build trust among homebuyers, promoting transparency and justice in the real estate industry across Haryana and beyond.
