The Haryana Real Estate Regulatory Authority (Haryana RERA) has directed Pyramid Infratech to pay delayed possession interest at an annual rate of 10.8% to four homebuyers in its Pyramid Fusion Homes project in Sector 70A, Gurugram.
The order relates to complaints concerning delays in handing over flats at the affordable housing project located in Palra village. Haryana RERA directed the developer to pay the applicable interest within 90 days from the date of the order. The interest is to be calculated on the amounts paid by the complainants for the period of delay.
The project was registered with Haryana RERA in February 2019. Its building plans were approved on January 23, 2019, while environmental clearance was received on August 30, 2019. Under the Haryana Affordable Housing Policy, 2013, the project was required to be completed within four years from the later of the two approvals.
Based on this provision, the authority determined the possession deadline as August 30, 2023. A six-month extension related to the Covid period was subsequently considered, resulting in an effective date of February 29, 2024, for determining the delay.
The developer argued that delays were caused by factors including pollution-control restrictions, Covid-19 lockdowns, labour shortages and other regulatory constraints. Haryana RERA, however, rejected the argument for additional relief, observing that recurring restrictions should have been considered during project planning.
The project eventually received its occupation certificate on August 14, 2024. Possession was offered to buyers on August 21, 2024, and the units were handed over on September 3, 2024. The conveyance deed was executed later, on June 24, 2025.
The authority also rejected the developer’s contention that execution of the conveyance deed ended the buyers’ right to seek compensation for delayed possession. Citing Supreme Court precedent, Haryana RERA held that transfer of title through a conveyance deed does not, by itself, remove the promoter’s statutory liability arising from delayed possession.
The 10.8% annual interest rate was determined using the State Bank of India’s marginal cost of lending rate of 8.8% prevailing on the date of the order, with an additional 2% as prescribed.
The authority directed Pyramid Infratech to calculate delayed possession charges from the applicable possession due date until two months after a valid offer of possession or the actual date of handing over, whichever was earlier.
However, the authority clarified that no interest would be charged for the six-month Covid period between March 1 and September 1, 2020.
The order reinforces the liability of real estate developers to compensate homebuyers when possession is delayed beyond the applicable regulatory deadline. It also indicates that execution of conveyance documents does not automatically extinguish statutory claims relating to delays that occurred before possession.
