A Gurgaon homebuyer recently gained victory after the Haryana Real Estate Regulatory Authority (RERA) ordered a developer to pay him over Rs 65 lakh for not delivering a flat, originally promised in 2015. The ruling, issued on March 19, 2025, held the builder accountable for a delay of more than nine years, as per a report by the Economic Times.
Timeline of Events
June 6, 2012: The builder received building plan sanctions.
June 17, 2013: Allotment letter issued for a 1,990 sq. ft. unit priced at Rs 2,700 per sq. ft.
June 25, 2013: The agreement was signed with a sale price of Rs 53.73 lakh (excluding TDS); the homebuyer paid Rs 62.79 lakh.
December 7, 2015: Promised date of possession, never met.
March 13, 2023: Buyer filed a complaint with Haryana RERA.
Despite full payment in 2013, the buyer never received possession. In response, he chose not to withdraw from the project, instead invoking Section 18 of the Real Estate (Regulation and Development) Act, 2016, which permits compensation without cancelling the booking, the report added.
Builder’s Defence Falls Flat
Builders cited a variety of reasons for the delay, including the death of an environmental authority chairman, delays in government approvals, the COVID-19 pandemic, economic downturns, and water shortages, according to the report.
However, Haryana RERA dismissed these arguments. The order reads: “The builder... raised the contention that the construction... has been delayed due to force majeure circumstances... However, all the pleas advanced in this regard are devoid of merit,” as quoted by ET.
RERA pointed out that the project was due for completion in 2015, five years before the onset of the COVID-19 pandemic. The regulator also ruled that administrative hurdles and annual weather events could not be used as blanket excuses for delay.
Compensation Formula: Rule 15
Using Rule 15 of Haryana RERA regulations, the authority calculated interest at State Bank of India’s highest MCLR plus 2 per cent, totalling 11.1 per cent annually. The order mandates this interest be applied to the paid-up amount from December 7, 2015 until possession is offered, plus two months, the report added.
Compensation Breakdown:
Paid Amount: Rs 62,79,109
Interest Rate: 11.1 per cent
Duration: 9 years and 5 months (Dec 2015 to May 2025)
Total Compensation: Rs 65,63,237.79
Litigation Costs: Rs 20,000
