Case Title: Pranshu Dutt & another Versus M/s Raheja Developers Limited
Case No.: Complaint No. 455 of 2023
A recent ruling by the Haryana Real Estate Regulatory Authority (RERA) has ordered a prominent builder, Raheja Developers Limited, to compensate homeowners for a significant delay in property delivery. The RERA bench, led by member Ashok Sangwan, found the builder guilty of a delay exceeding four years in providing the scheduled possession of the flat, which was initially due in April 2020.
The said property, Raheja Aranya City Phase 2, is located in Sector 11 & 14, Sohna, Gurugram. The homeowners were allocated a plot in this project as per an allotment letter dated 06.10.2016. Later, a sale agreement was signed between the parties on the same date, where the basic sale price was Rs. 1,14,14,959/-. The homeowners had paid an amount of Rs. 1,02,53,336/- by 11.06.2019.
According to the buyer’s agreement (Clause 4.2), the builder was obliged to hand over possession before 06.10.2019. However, three years past the due date, the homeowners are still awaiting possession. Numerous visits to the builder’s office and multiple requests for project updates have only resulted in false assurances of completion.
The builder’s failure to deliver the plot despite receiving more than 80% of the total sale payment and consistent false promises over six years prompted the homeowners to seek legal recourse. They filed a complaint before the RERA, asking for possession of the unit and interest for the delay.
Upon reviewing the case, the RERA highlighted the ambiguity in Clause 4.2 of the sale agreement, which favors the promoter heavily. It was found to be vague and uncertain, making it challenging for the allottee to understand their rights and obligations. It mandates possession subject to various conditions, including action by government/regulatory authorities, force majeure conditions, or the provision of necessary infrastructure by the government.
The RERA observed that despite the passage of over four years, the construction remains incomplete, and the builder has not offered possession of the allotted plot. The authority also noted a lack of documents to confirm whether the builder has applied for a completion certificate or the current status of the project.
As a result, RERA has directed the builder to pay interest to the homeowners at 10.85% per annum for each month of delay from the due date of possession, i.e., 06.04.2020. This payment is to continue until a valid offer of possession is made and for an additional two months after obtaining the completion certificate from the competent authority, as per section 18(1) of the Real Estate (Regulation and Development) Act, 2016.
This ruling underscores the importance of transparency and adherence to commitments in real estate dealings. It serves as a reminder that any deviation from the agreement’s terms and conditions can lead to severe legal consequences.
