GURUGRAM: The Haryana Real Estate Regulatory Authority (HRERA) has instructed Ireo Private Ltd to pay an annual delay interest of 10.8% to UK-based allottee Balraj Singh for failing to deliver possession of a plot in its Ireo City project in Sector 60 on schedule.
Singh acquired a 314 sq-yard plot back in 2011 but was only offered possession in December 2021, with the actual handover occurring a year later, following multiple delays and a reduction in plot size. Since the project was approved in 2014 and the original delivery date was set for 2017, the Authority concluded that Singh experienced an eight-year delay in receiving the plot.
The Authority rejected Ireo’s argument that agreements made prior to RERA’s implementation are unaffected by the Act, ruling that RERA protections apply to ongoing projects and delays due to approvals are not exemptions for developers. Ireo has been given 90 days to comply, reaffirming HRERA’s commitment to protecting homebuyers’ rights.
The HRERA bench, chaired by member Ashok Sangwan, noted that Ireo consistently delayed delivery, with possession being finally offered in December 2021 and handed over in 2022 after an eight-year wait. The Authority also pointed out that Ireo reduced the plot size to 265.45 sq. yds. but continued to charge Singh for the original larger area.
Singh stated that he made all payments punctually, yet possession was not delivered within the agreed timeframe.
The Authority established the due date for possession as February 14, 2017—36 months after Ireo received consent to establish—and directed the developer to pay delay interest at 10.8% annually from that date until possession was offered, plus an additional two months or until actual handover, whichever comes first. The developer has 90 days to comply or risk further legal action.
