Haryana RERA Orders Signature Global To Pay Interest To Homebuyer For Delayed Possession, Also Held Sale Agreement Biased
Haryana RERA Orders Signature Global To Pay Interest To Homebuyer For Delayed Possession, Also Held Sale Agreement Biased
The bench of the Haryana Real Estate Regulatory Authority (RERA), led by Sanjeev Kumar Arora (Member), has instructed Signature Global India Private Limited, the builder, to compensate the homebuyer with interest due to the delayed possession. Furthermore, the Authority concluded that the agreement's terms unfairly favour the builder.
As to the facts of the case, the homebuyer (Complainant) was allotted a flat in the builder's (Respondent) affordable housing project named The Millenia, located in Sector 37D, Gurugram in October 2017, through a draw of lots. The total consideration was Rs. 22,49,267/-.
Later, in December 2017, the homebuyer and builder signed a Builder's Buyer Agreement. According to the agreement, the builder committed to delivering possession of the flat within four years from the approval of the building plan or the grant of environmental clearance. Consequently, the possession date for the flat was scheduled for February 21, 2022.
The homebuyer argued that the builder's inability to complete and hand over the assigned flat within the agreed timeframe has resulted in substantial financial loss and mental distress.
The homebuyer levelled accusations against the builder, citing negligence, recklessness, and deception and also claimed that the builder provided false assurances to attract investment, resulting in unjust losses for the homebuyer while benefiting the builder unfairly.
Distressed by the delay, the homebuyer lodged a complaint with the Haryana RERA seeking immediate possession of the flat and compensation for the delayed handover.
Observation by Haryana RERA
According to the RERA, the pre-defined possession clause in the agreement unfairly favoured the builder over the homebuyer. It highlighted that the clause's ambiguous terms imposed numerous conditions on allottees, where even minor infractions could lead to the cancellation of the possession agreement.
Additionally, the RERA found that the builder contravened Section 11(4)(a) of Real Estate (Regulation and Development) Act, 2016 by failing to deliver possession by the agreed-upon date specified in clause 5.1 of the agreement, which was February 21, 2022. Consequently, the builder did not fulfill its contractual obligations to hand over possession within the stipulated timeframe.
The Authority referred to Section 18(1) of the Real Estate Regulation and Development Act 2016, which states:
18. Return of amount and compensation.
(1) If the builder fails to complete or is unable to give possession of an apartment, plot, or building—
(a) in accordance with the terms of the agreement for sale or, as the case may be, duly completed by the date specified therein; or
(b) due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this Act or for any other reason, he shall be liable on demand to the homebuyers, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment, plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf including compensation in the manner as provided under this Act:
Provided that where an allottee does not intend to withdraw from the project, he shall be paid, by the builder, interest for every month of delay, till the handing over of the possession, at such rate as may be prescribed.
Therefore, the Haryana RERA directed the builder to pay the homebuyer interest for each month of delay from the due date of possession (21.02.2022) until the possession date (01.04.2023), plus an additional two months, at an interest rate of 10.85% per annum.
