The Haryana Real Estate Regulatory Authority (HRERA) has reaffirmed the rights of homebuyers by directing two developers to compensate purchasers for delays in handing over residential units. The rulings relate to projects at Sovereign Floors at Alba, Esencia in Sector 67, and Coban Residencies in Sector 99A, Gurugram.
In the Sovereign Floors case, HRERA ordered New Look Builders & Developers Pvt. Ltd. to pay compensation of ₹39.7 lakh to the homebuyer, along with ₹1 lakh for mental agony and ₹50,000 towards litigation expenses. The buyer had booked a residential floor in 2011, with possession contractually due in August 2014. However, the project remained incomplete, prompting the buyers to withdraw from the project in May 2023.
Although the authority had previously directed the developer to refund the deposited amount with interest, the homebuyers later sought additional compensation for the loss of appreciation in property value caused by the prolonged delay. HRERA rejected the developer’s argument that awarding compensation in addition to interest would amount to double penalization. The authority observed that interest on delayed refunds cannot replace compensation for the financial losses arising from the developer’s failure to complete the project on time. It further noted that property values in the locality had increased substantially during the delay, resulting in a significant financial loss for the buyers.
In another ruling involving Coban Residencies, HRERA directed Pareena Infrastructure to pay additional compensation in the form of interest for the delay between the offer of possession and the actual physical handover of the apartment. The authority also awarded ₹1 lakh for mental harassment and ₹50,000 as litigation costs.
The buyer had booked the apartment with possession due in February 2019. Although the developer later issued an offer of possession, the apartment was not ready for occupation, and physical possession was eventually handed over only in August 2019 after prolonged litigation and disputes.
HRERA ruled that its earlier order covered compensation only up to the offer of possession. Since the actual handover occurred later, the authority directed the developer to pay additional interest at 10.8% per annum for the intervening period.
