GURUGRAM: Haryana Real Estate Regulatory Authority (HRera) has set aside cancellation of a flat in an affordable housing project in Sector 89 and directed developer MRG Infrabuild to reinstate the unit and pay delay compensation at 10.9% per annum.
The authority found that the builder failed to meet statutory timelines and had wrongly cancelled the unit even though the buyer had paid more than the total sale price.
The case concerns a flat in project The Meridian, allotted to Amit Kumar Pandey of South Delhi. Pandey had already paid over 100% of the flat’s cost (Rs 25.8 lakh against Rs 25.5 lakh) before the builder cancelled the allotment on July 14, 2023, citing payment defaults.
Pandey told the authority that the builder had repeatedly raised demands of payment, with interest, during the Covid period. According to him, the builder’s officials later admitted that these were system-generated and not payable. He said he continued paying instalments in good faith and eventually paid the full sale amount, but the developer cancelled the unit and later claimed further interest.
In its order dated Nov 20, 2025, a two-member bench led by chairperson Arun Kumar stated that the cancellation letter was invalid and violated the affordable housing policy. Under the policy, a defaulting allottee must be given at least 15 days after the publication of a defaulter list in a newspaper. In this case, the promoter cancelled the allotment just 2 days after the publication on July 12, 2023.
The authority also noted that when Pandey made a payment of Rs 1,65,107 on July 21, 2023, he had already paid more than the total sale price, yet the promoter had neither obtained an occupation certificate nor issued an offer of possession. Even after considering the developer’s claim of additional dues at the time of possession, HRera held the promoter responsible for the delay.
Relying on Section 18(1) of Real Estate (Regulation and Development) Act and rule 15 of the Haryana RERA rules, the authority fixed the interest rate at 10.9 per cent. The due date for possession was calculated as Feb 28, 2024, taking four years from the environmental clearance granted on Aug 30, 2019, along with a six-month Covid extension.
HRera has directed MRG Infrabuild to reinstate the flat within 30 days and pay all delay interest within 90 days. The promoter must continue paying monthly interest until a valid offer of possession is issued after obtaining the occupation certificate or until the actual handover, whichever is earlier. The buyer has been asked to clear any remaining principal dues after adjusting the delay charges, and the builder has been barred from recovering any amount beyond what is stated in the buyer agreement.
