Delayed possession in Sonepat: Delhi developer ordered to pay ₹10 lakh interest to homebuyer

Pronouncing the order on September 29 in a complaint filed in 2023 by Santosh Chaudhary, a resident of Sector 13, Rohini, Delhi, the authority also held that the complainant would remain liable to pay any outstanding consideration and applicable charges

The Haryana Real Estate Regulatory Authority (HRERA), Panchkula, has directed New Delhi-based builder to pay ₹10 lakh in interest to a homebuyer for delaying possession of a residential plot in its Green Wood City project in Sonepat.

The developer also sought recovery of maintenance, statutory connection fees and holding charges amounting to ₹21 lakh as of July 17, 2023, claiming it had been maintaining the plot since June 2020. (HT Photo for representation)

Pronouncing the order on September 29 in a complaint filed in 2023 by Santosh Chaudhary, a resident of Sector 13, Rohini, Delhi, the authority also held that the complainant would remain liable to pay any outstanding consideration and applicable charges. Any delay in payment would attract interest at the equitable rate of 10.80%.

The developer, based at Jai Krishna Artee J.V. (JKA) located in the Hansalaya Building, Connaught Place, New Delhi, was directed to adjust the outstanding amount against the adjudicated delay-possession interest and pay the remaining amount, if any, to the complainant.

According to the complaint, Chaudhary had booked a 250-square-yard residential plot for a basic sale consideration of ₹15 lakh, of which she had paid ₹9 lakh. The possession was due on September 9, 2011. She alleged that despite receiving 55% of the sale consideration, the developer failed to issue a formal allotment letter or execute a registered buyer’s agreement, in violation of Section 13 of the Real Estate (Regulation and Development) Act, 2016.

The developer contested the allegations, claiming that Chaudhary had acquired the booking from an earlier purchaser in 2008 but repeatedly failed to execute the plot buyer’s agreement despite notices and reminders. It said possession had been offered on June 1, 2020, and that repeated communications were sent until July 2023 asking her to clear dues and take possession.

The developer also sought recovery of maintenance, statutory connection fees and holding charges amounting to ₹21 lakh as of July 17, 2023, claiming it had been maintaining the plot since June 2020.

Chaudhary, however, argued that the possession offer was premature and invalid because the developer had not obtained the requisite completion, occupancy or partial completion certificate. She also alleged that the plot area had been reduced from 250 to 239 square yards and the total sale price increased from ₹15 lakh to ₹25 lakh.

After hearing both sides, HRERA held that the developer had failed to complete the development works and deliver possession within a reasonable period, making it liable to pay interest for the delay. It further observed that, in the absence of established terms governing variation in plot area, the basic sale consideration must be calculated strictly according to the actual plot area handed over.