GURUGRAM: The Haryana Real Estate Regulatory Authority (HRera) has reaffirmed the right of homebuyers to seek compensation for delayed possession in the Sovereign Floors at Alba, Esencia, Sector 67, and Coban Residencies, Sector 99A.
In the case of Sovereign Floors, Rera ordered New Look Builders & Developers Pvt Ltd to compensate Rs 39.7 lakh, along with Rs 1 lakh for mental anguish and Rs 50,000 to cover litigation costs. The buyer had booked a residential floor in 2011, expecting possession by August 2014, but the project remained unfinished. The buyer eventually withdrew in May 2023.
Although HRera had previously mandated a refund of the deposit with interest, the purchasers later requested compensation for the drop in property value caused by the prolonged delay.
Rejecting the developer’s argument that compensation would result in double jeopardy, the adjudicating officer noted that the interest on the delayed refund did not compensate for the separate losses arising from the developer’s failure to complete the project. The authority recognized that the buyers faced significant financial loss, as property values in the area had appreciated considerably over the years.
In the case of Coban Residencies, the authority directed Pareena Infrastructure to provide additional compensation in the form of interest for delays beyond a previous order, alongside Rs 1 lakh for mental distress and Rs 50,000 for legal expenses. The buyer booked the unit with possession due in February 2019, but it was ultimately delivered in August 2019.
The authority emphasized that the developer failed to deliver physical possession despite earlier directives, and the apartment was not ready for occupancy, even after an offer had been made.
The buyers had previously secured a ruling that mandated the developer to pay compensation for delayed possession until the offer was made, and later obtained another order compelling the physical handover of the apartment. However, HRera found that actual possession was delivered much later, following extensive litigation and disputes regarding alleged deficiencies and financial demands.
The adjudicating officer determined that the compensation awarded in earlier proceedings only covered the time up to the offer of possession, not the delays between that and the eventual handover. Consequently, the authority instructed 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 comment.
