Haryana Real Estate Tribunal Upholds Pre-existing Agreement in Affordable Housing Case

Haryana Real Estate Tribunal Upholds Pre-existing Agreement in Affordable Housing Case

In a significant ruling, the Haryana Real Estate Appellate Tribunal presided over by Justice Rajan Gupta (Chairman) and Anil Kumar Gupta (Technical Member), clarified that the Affordable Housing Policy (amendment) of 2019 cannot retroactively modify the financial commitments outlined in existing agreements. Consequently, the tribunal invalidated the order issued by the Haryana Real Estate Regulatory Authority (HRERA) on September 27, 2022.

The background details are as follows: On July 24, 2018, the appellants (referred to as ‘allotees’) were assigned a flat unit within a Gurugram project under the Affordable Housing Policy of 2013. The buyer’s agreement, signed on March 6, 2019, stipulated a possession due date of January 9, 2021.

Subsequent to the implementation of the Amended Affordable Housing Policy in 2019, the respondent (the project promoter) demanded additional payments from the appellants for the allocated flat, exceeding the amounts specified in the original 2013 policy. On April 6, 2019, the respondent cancelled the flat allotment due to non-payment of the additional demands, citing the amended policy’s revised payment requirements.

Displeased by the cancellation, the appellants filed a complaint with the HRERA, seeking the restoration of their cancelled unit. In its order dated September 27, 2022, the HRERA dismissed the appellants’ plea for reinstatement but directed the respondent to refund ₹3,20,537, previously paid by the appellants.

The Appellant appealed the HRERA’s decision before the Haryana Real Estate Appellate Tribunal (REAT). The REAT, in its verdict, allowed the appeal and set aside the HRERA’s order from September 27, 2022. The Tribunal emphasised that the amended Affordable Housing Policy of 2019 cannot retroactively alter the financial obligations specified in pre-existing agreements.