GURUGRAM: The Haryana Real Estate Regulatory Authority (HRera) has instructed the developer of a high-rise condominium—a budget-friendly housing initiative in Sector 109—to compensate the buyer for delays in possession and to deliver the apartment as stipulated in the purchase agreement.
The unit, number 908 in Tower 3 at Expressway Towers 109, was bought for ₹26.26 lakh nine years ago. The builder had promised timely delivery of the 644-square-foot flat, along with a 100-square-foot balcony, but failed to meet the four-year deadline from the allotment date of May 19, 2017.
HRera (Gurgaon) ordered the builder to pay interest at an annual rate of 11.10% on the amount already paid by the buyer from May 30, 2022, until either an official offer of possession is made or two months after the issuance of the occupation certificate—whichever occurs first.
The builder has been granted 90 days to settle all outstanding interest and is required to continue monthly interest payments until possession is handed over. Additionally, the builder must provide a revised account statement within 30 days, detailing adjusted dues post-interest.
The buyer approached HRera citing an unreasonable delay in the delivery of the unit, which was booked in 2016. A down payment of ₹1.28 lakh was made on January 17, 2016, totaling ₹13.65 lakh by May 2018.
Despite reminders from the developer in July 2021 for pending dues, the project remained unfinished. The buyer sought immediate possession, offsetting any pending dues with delay compensation.
After reviewing the case, HRera found the developer in violation of Section 11(4)(a) of the RERA Act and issued directives under Section 37.
Once the alternative account statement is received, the buyer must clear any outstanding dues within 60 days. The builder is also mandated to transfer possession of the flat and execute the conveyance deed within three months of obtaining the occupation certificate, subject to applicable stamp duty and registration fees.
The authority clarified that the promoter is prohibited from charging labor cess or work contract tax and must provide proof of VAT calculations where applicable. Maintenance fees may only be charged based on actual consumption, as per the ruling.
In August of last year, HRera held a meeting regarding the stalled OSB Expressway Towers project in Sector 109 with both homebuyers and the builder, warning that failure to complete the project within six months would result in invoking Section 8 of the RERA Act.
This would allow the buyers’ association to take control and possibly engage a third-party builder.
The project, launched in 2017, has faced extensive delays. Despite repeated warnings, the builder has not delivered the units. In response to HRera Chairperson Arun Kumar’s caution, the builder had pledged to complete the project on time. However, he is currently dealing with issues stemming from the suspension of licenses for three other projects due to payment defaults and non-compliance with planning regulations.
