A developer based in the city has been instructed to provide compensation to a homebuyer due to a delay in delivering possession of a residential unit located in the city. Furthermore, the Haryana Real Estate Regulatory Authority (Hrera) has stated that a refund of the invested amount “does not preclude additional compensation” – the buyer is set to receive over Rs 21 lakh.
On March 17, Rera issued the order following a complaint filed by Nishant Mehra against Ramprastha Promoters and Developers. The possession of the unit situated in Sector 37D – within the Edge Towers project, part of Ramprastha City – was initially promised by August 2012.
The developer has been ordered to pay the awarded sum along with an annual interest rate of 10.8% from the date of the order until the amount is realized. In determining the compensation, adjudicating officer Rajender Kumar considered the trends in property price appreciation in the area. It was observed that prices in Sector 37D experienced a substantial increase over the years, leading to an estimated loss of nearly Rs 18.9 lakh for the complainant due to the lack of appreciation on his investment.
Consequently, Rera granted Rs 18.9 lakh as compensation for the loss of appreciation. Additionally, Rs 2 lakh was awarded for mental distress and Rs 50,000 for litigation expenses. Mehra had booked the apartment in 2008 and was subsequently allocated a unit of approximately 1,990 sq ft.
A builder-buyer agreement signed in April 2012 established August 31 of the same year as the deadline for possession. However, the project was not completed within the agreed timeframe. The complainant indicated that he had paid over Rs 44 lakh towards the total cost of around Rs 52.9 lakh but did not receive possession.
He later approached Rera and obtained a refund order in February 2023, along with interest at a rate of 10.7% per annum. Despite receiving the refund order, Mehra requested further compensation, citing rental costs, financial strain from loan repayments, and mental distress caused by the delay. He also claimed that he incurred accommodation expenses while awaiting possession.
The developer challenged the plea, contending that the complaint was not sustainable and that the delays were caused by unforeseen circumstances. It further asserted that the timeline for possession was extended in accordance with the terms of the agreement. Dismissing these claims, the authority determined that the failure to deliver possession within the agreed timeframe rendered the promoter liable for compensation under the provisions of the Real Estate (Regulation and Development) Act, 2016.
The authority rejected additional claims, including requests for increased compensation and reimbursement of certain expenses, citing insufficient evidence. This order emphasizes that homebuyers are entitled to seek compensation beyond mere refunds in instances of delayed possession, particularly when financial loss and hardship can be demonstrated.
