The Haryana Real Estate Regulatory Authority(HRERA) has instructed a builder, who had cancelled the allotment of a flat due to non-payment of dues, to reimburse Rs 7,30,000 to the allottee after a minor deduction and with interest.
Sachin Kumar contested the cancellation of his residential unit in Expressway Towers, which is part of the affordable housing project located in Sector-109. The total cost of the unit was Rs 12,28,000, of which the complainant had already paid Rs 7,31,251, representing 60% of the total price. However, the promoter issued a cancellation notice on September 3, 2021, citing the non-payment of the outstanding balance.
In a ruling delivered on November 13, the Authority mandated the builder, Ocean Seven Buildtech, to refund the amount paid, totaling Rs 7 lakh, to the complainant, along with an interest rate of 10.85% per annum, after deducting Rs 25,000. The builder has been allotted a period of 90 days to adhere to this order.
The Authority specified in its ruling that the due date for possession is determined by the later date of regulatory approvals—the environmental clearance dated November 30, 2017, plus the required four years for completion as per the Affordable Housing Policy of 2013. After accounting for an additional six-month grace period granted due to the Covid pandemic, the due date for possession was established as May 30, 2022.
The promoter raised objections, contending that the regulator did not have jurisdiction due to an arbitration clause present in the buyer agreement. It was asserted that the delay in the project was due to force majeure events, specifically NGT bans, Covid, and the suspension of its license along with the freezing of accounts since February 2023. However, the Authority dismissed these claims, asserting that the suspension of the license and the freezing of accounts were a result of violations committed by the builder.
