Haryana RERA Directs Builder to Pay 11% Annual Interest for Delayed Flat Possession

The Haryana Real Estate Regulatory Authority (Haryana RERA) has once again demonstrated its commitment to protecting homebuyers’ rights by ordering a builder to pay an annual interest of 10.8% to a couple for the delayed possession of their flat in Gurugram. This landmark ruling comes from a case involving Godrej Real View Developers and emphasizes the authority’s stringent enforcement of timelines under the RERA Act, 2016.

The order not only ensures that buyers are compensated for financial losses caused by project delays but also sets a precedent for builders to adhere strictly to possession schedules. Here’s a detailed look at the case, the builder’s claims, and the ruling by Haryana RERA.

Case Background

The case was filed by Malik Ram and Sarita Verma, a couple from Lucknow, who booked a flat in Godrej Meridien-I, Phase I, Tower 2, located in Sector 106, Gurugram. The couple had opted for a construction-linked payment plan and had paid nearly the entire consideration, approximately ₹1.74 crore, by May 2024.

As per the agreement executed on September 27, 2019, the original possession date was set for September 30, 2020. However, due to various delays, the builder requested extensions, and Haryana RERA later revised the possession timeline to March 30, 2023. Despite these extensions, the actual physical possession was offered only on November 27, 2024.

Also Read: Understanding RERA Rules: Under-Construction vs Ready-to-Move-In Properties

Builder’s Claims and Justifications

Godrej Real View Developers cited multiple reasons for the delay in handing over possession:

• COVID-19 lockdowns and labour shortages
• Escalation in construction costs
• Recurring seasonal pollution-related construction bans in the NCR region
  
  

The builder also argued that the occupation certificate was obtained on March 31, 2023, and the conveyance deed was executed in November 2024. According to the company, possession was effectively offered in May 2024, after which the buyers could take over the property.

Haryana RERA’s Assessment

The complaint filed by the Lucknow couple was examined under Section 31 of the Real Estate (Regulation and Development) Act, 2016. Member Ashok Sangwan of Haryana RERA carefully reviewed the builder’s force majeure claims.

The authority rejected these justifications beyond the six-month COVID-19 extension previously granted, stating that recurring pollution-related curbs were foreseeable and could not be considered as fresh grounds for delay. The ruling highlighted the builder’s failure to hand over possession even after the revised timeline and confirmed the buyers’ entitlement to compensation.

Details of the Compensation Ordered

Haryana RERA directed the builder to pay interest at 10.8% per annum (approximately 11%) to the couple from March 30, 2023, until the date of possession. The compensation is calculated on a monthly basis to ensure that the buyers are fully reimbursed for the financial inconvenience caused by the prolonged delay.

This order reinforces the importance of adhering to the timelines specified under RERA, while protecting the financial interests of homebuyers who have invested heavily in under-construction properties.

Importance of Haryana RERA in Protecting Homebuyers

The ruling demonstrates the critical role of Haryana RERA in safeguarding buyer rights. Under the RERA Act 2016:

• Buyers are entitled to interest for delays in possession
• Builders are legally bound to adhere to revised possession schedules
• Force majeure claims are strictly scrutinized to prevent misuse

This ensures transparency, accountability, and timely completion of residential projects in Haryana, benefiting both buyers and the overall real estate ecosystem.

Lessons for Builders and Buyers

For Builders:

• Must adhere to revised possession timelines and avoid relying on avoidable delays
• Ensure clear communication with buyers regarding construction progress

For Buyers:

• Maintain records of payment receipts and agreements
• Monitor project progress and escalate issues to Haryana RERA if necessary
• Understand legal provisions for claiming interest in case of delays

This case underscores the need for both parties to act responsibly to maintain trust in the real estate sector.

Also Read: Housing Ministry Launches Unified RERA Portal

Steps for Homebuyers to Claim Compensation under Haryana RERA

If a project is delayed, homebuyers can follow these steps:

1. File a complaint under Section 31 of the RERA Act 2016
2. Submit proof of payment, agreement, and possession deadlines
3. Track proceedings and hearings with Haryana RERA
4. Ensure monthly interest or compensation is credited until actual possession

By adhering to these steps, buyers can safeguard their investments and ensure builders are held accountable.

Conclusion

The recent ruling by Haryana RERA in the case of Godrej Meridien-I emphasizes the authority’s strict enforcement of homebuyer protection provisions under the RERA Act. Ordering the builder to pay 11% annual interest for delayed possession reinforces the message that developers must honour agreed timelines.

For buyers, this ruling highlights the importance of staying informed, maintaining proper documentation, and taking timely action through Haryana RERA when delays occur. Such measures not only protect individual investments but also promote transparency and accountability in Haryana’s real estate market.