Haryana RERA Rules in Favour of Homebuyer in Delayed Possession Case

Haryana RERA Rules in Favour of Homebuyer in Delayed Possession Case

The Haryana Real Estate Regulatory Authority (Haryana RERA), presided over by Justice Ashok Sangwan (Member), has ruled in favour of a homebuyer who sought to withdraw from a real estate project due to delayed possession.

The complainant purchased an apartment in the "Provence Estate" project for ₹3,24,80,000 with a promised possession date within 36 months of construction commencement. Despite paying a significant portion of the amount (₹3,10,44,968) by December 24, 2013, the builder failed to complete construction on time.

Over the following years, the builder made demands for additional payments while offering assurances of project completion. However, even after claiming to have obtained an occupancy certificate in October 2019, the unit and common areas remained unfinished.

Frustrated by the delays, the complainant filed a petition under the Insolvency and Bankruptcy Code (IBC) with the National Company Law Tribunal (NCLT) seeking a full refund.

On November 28, 2019, the NCLT initiated the Corporate Insolvency Resolution Process (CIRP) against the builder. Subsequently, an interim resolution professional (IRP) was appointed. The IRP then notified the builder of project completion on June 22, 2020, urging the homebuyer to take possession. However, upon inspection, the homebuyer found the unit and common areas incomplete.

Following further demands from the builder in November 2022, and the builder's unilateral cancellation of the allotment letter in December 2022, the homebuyer approached Haryana RERA seeking a refund with interest.

Haryana RERA ruled in favour of the homebuyer, citing the builder's violation of the Real Estate Regulation and Development Act (RERA) 2016 for failing to deliver possession on time. The homebuyer was granted the right to withdraw from the project and claim a full refund with interest under Section 18(1) of the Act.

The Authority rejected the builder's claims of force majeure events as justification for the delay, considering them foreseeable circumstances that should have been factored into the project timeline.

Haryana RERA directed the builder to refund the entire paid amount along with interest calculated at an annual rate of 10.85 per cent as per Rule 15 of the Haryana Real Estate (Regulation and Development) Rules, 2017. This rule mandates a specific interest rate based on the State Bank of India's lending rates.