3 days ago
Flat delayed, builder told to pay buyer 11% interest in Gurgaon
Gurgaon: Haryana Real Estate Regulatory Authority (HRera) has directed the builder of a highrise condominium — an affordable group housing project in Sector 109 — to pay the delay-possession interest and hand over the apartment to the complainant as per the terms of the buyer's agreement.
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The unit number 908 of Tower 3 at Expressway Towers 109 was purchased for Rs 26.26 lakh nine years ago. The builder assured timely possession of the flat, with a carpet area of 644 sqft and a balcony area of 100 sqft, but failed to deliver within the stipulated four-year period from the date of allotment — May 19, 2017.
HRera (Gurgaon) ordered the realtor to pay interest at 11.10% per annum on the amount paid by the complainant from May 30, 2022 until the valid offer of possession or two months post-occupation certificate — whichever is earlier.
The builder has been given 90 days to clear all arrears of interest and must continue paying interest monthly until possession is offered. Additionally, the builder must provide an updated statement of account within 30 days, reflecting adjusted dues after interest.
The complainant approached HRera alleging an inordinate delay in the delivery of the unit, which had been booked in 2016. An initial payment of Rs 1.28 lakh was made on Jan 17, 2016 and a total of Rs 13.65 lakh was paid by May 2018.
Despite demands raised by the promoter in July 2021 for outstanding dues, the project remained incomplete. The complainant sought immediate possession after adjusting pending dues against delay compensation.
After hearing the matter, HRera held the promoter in contravention of Section 11(4)(a) of the RERA Act and passed directions under Section 37.
Upon receipt of the updated statement of account, the complainant must clear any outstanding dues within 60 days.
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The builder has also been instructed to hand over the flat and execute the conveyance deed within three months of obtaining the occupation certificate, subject to stamp duty and registration charges.
The authority clarified that the promoter cannot charge labour cess or work contract tax and must provide VAT calculation proofs if applicable. Maintenance charges may only be levied as per actual consumption, the order said.
In Aug last year, HRera conducted a meeting on the stalled OSB Expressway Towers project in Sector 109 with homebuyers and the builder and issued a final warning, saying that if the project was not completed within six months, the regulator would invoke Section 8 of the Rera Act.
This would transfer control to the buyers' association and potentially involve a third-party builder.
The project, launched in 2017, faced significant delays, and despite repeated warnings, the builder failed to deliver possession of the flats. In response to HRera chairperson Arun Kumar's warning, the builder had assured completion of the project within the timeframe.
However, he faces challenges arising out of licence suspension of three of his other projects due to default in payment and non-compliance with department of town and country planning orders.
