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GURUGRAM: The Haryana Real Estate Regulatory Authority (HRera) has overturned the cancellation of a flat in an affordable housing project located in Sector 89. The authority has ordered the developer, MRG Infrabuild, to reinstate the unit and compensate for delays at a rate of 10.9% per annum.
The authority’s findings indicated that the builder failed to adhere to legal timelines and wrongfully cancelled the unit, despite the buyer having paid more than the total sale price.
The issue revolves around a flat in The Meridian project, which was allotted to Amit Kumar Pandey, a resident of South Delhi. Pandey had already made payments exceeding the flat’s cost (Rs 25.8 lakh versus Rs 25.5 lakh) before the builder cancelled his allotment on July 14, 2023, citing payment defaults.
Pandey informed the authority that the builder had repeatedly demanded payments, including interest, during the COVID-19 pandemic. He claimed that the builder’s officials later admitted these demands were generated by the system and were not due. Despite continuing to make payments in good faith, the builder cancelled the unit and subsequently claimed further interest.
In its ruling on November 20, 2025, a two-member bench led by Chairperson Arun Kumar determined that the cancellation letter was invalid and breached affordable housing policies. According to the policy, any defaulting allottee must be given a minimum of 15 days after a defaulter list is published in a newspaper before any cancellation occurs. In this case, the cancellation happened just two days after the publication on July 12, 2023.
The authority observed 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. Additionally, the promoter had neither secured an occupation certificate nor issued an offer of possession. Even considering the developer’s claims of additional dues at the time of possession, HRera held the promoter accountable for the delays.
Citing Section 18(1) of the Real Estate (Regulation and Development) Act and Rule 15 of the Haryana RERA rules, the authority established the interest rate at 10.9%. The due date for possession was set as February 28, 2024, allowing four years from the environmental clearance, granted on August 30, 2019, along with a six-month COVID-related extension.
HRera mandated MRG Infrabuild to restore the flat within 30 days and to pay all delay interest within 90 days. The promoter is required to continue paying monthly interest until either a valid possession offer is made after obtaining the occupation certificate, or until the actual handover, whichever occurs first. The buyer must settle any outstanding principal dues after adjusting for delay charges, and the builder is prohibited from recovering any amounts beyond what is outlined in the buyer agreement.
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