GURUGRAM: The Haryana Real Estate Regulatory Authority has instructed a builder to refund Rs 7,30,000 to an allottee following the cancellation of a flat due to non-payment of dues. Sachin Kumar contested the cancellation of his unit in Expressway Towers under the affordable housing initiative in Sector-109.
The total cost of the unit was Rs 12,28,000, with Kumar having paid Rs 7,31,251, representing 60% of the total price. The builder issued a cancellation notice on September 3, 2021, for non-payment of the remaining balance. On November 13, the Authority ordered Ocean Seven Buildtech to refund the paid amount of Rs 7 lakh plus interest at 10.85% per annum, after deducting Rs 25,000. The builder has 90 days to comply with this ruling.
The Authority clarified that the possession due date is determined by the later of the regulatory approvals—the environmental clearance dated November 30, 2017, plus an additional four-year period for completion as outlined in the Affordable Housing Policy, 2013.
After accounting for a six-month grace period granted due to COVID-19, the possession due date was set for May 30, 2022. The builder raised objections, claiming that the regulatory authority lacked jurisdiction because of an arbitration clause in the buyer agreement, and argued that project delays were caused by force majeure events, including NGT bans, COVID-19, and a suspension of the builder’s license and account freezing since February 2023.
However, the Authority dismissed these claims, stating that the license suspension and account freezing were due to the builder’s infringements.
