GURUGRAM: Haryana Real Estate Regulatory Authority (HRera) has reinforced homebuyers’ right to compensation for delayed possession in projects Sovereign Floors at Alba, Esencia, Sector 67, and Coban Residencies, Sector 99A.
In the Sovereign Floors case, Rera directed New Look Builders & Developers Pvt Ltd to pay Rs 39.7 lakh in compensation, besides Rs 1 lakh for mental agony and Rs 50,000 as litigation costs. The buyer booked a residential floor in 2011, with possession contractually due in Aug 2014, but the project remained incomplete. The buyers eventually withdrew from the project in May 2023.
Although HRera had earlier ordered a refund of the deposited amount with interest, the allottees subsequently sought compensation for the loss of appreciation in property values due to the prolonged delay.
Rejecting the developer’s contention that awarding compensation would amount to penalising it twice, the adjudicating officer observed that interest awarded on delayed refund could not substitute compensation for separate losses arising from the developer’s failure to complete the project. The authority concluded that the buyers suffered substantial financial loss, as property prices in the locality appreciated significantly over the years.
In the Coban Residencies case, the authority directed Pareena Infrastructure to award additional compensation in the form of interest for the delay beyond an earlier order, along with Rs 1 lakh for mental harassment and Rs 50,000 towards litigation expenses. The buyer booked the unit with possession due in Feb 2019; however, it was ultimately handed over in Aug 2019.
The authority held that the developer failed to hand over physical possession despite earlier directions and that the apartment was not ready for occupation even after an offer of possession was issued.
The buyers earlier secured an order directing the developer to pay delayed possession compensation until the offer of possession and later obtained another direction requiring physical handover of the apartment. However, HRera found that actual possession was delivered much later, after repeated litigation and disputes over alleged deficiencies and financial demands.
The adjudicating officer ruled that compensation already awarded under the earlier proceedings covered only the period until the offer of possession and not the delay between that stage and the eventual handover. Consequently, the authority directed the developer to pay additional compensation in the form of interest at 10.8% per annum for the intervening period.
The developers could not be reached for a comment on the matter.
