Delay Compensation
Delhi
Homebuyer Rights
Homebuyers
NCR
rera
RERA Orders Builder to Pay ₹65 Lakh for 9-Year Delay in Delhi-NCR Home Delivery
A homebuyer from Gurgaon, Delhi-NCR, has finally received justice after waiting over nine years for possession of a flat. The Haryana RERA (Real Estate Regulatory Authority) has ordered the builder to pay ₹65.63 lakh as compensation for the long delay.
Background of the Case:
- June 17, 2013: Homebuyer received allotment letter for a 1,990 sq. ft. unit at ₹2,700/sq. ft.
- June 25, 2013: Builder-buyer agreement signed; total price: ₹53.73 lakh (excluding TDS).
- Possession Date Promised: December 7, 2015
- Amount Paid by Buyer: ₹62.79 lakh (includes TDS)
- March 13, 2023: Buyer filed a case with Haryana RERA due to non-possession.
Builder’s Defense (Rejected by RERA):
The builder blamed :
- COVID-19
- Environmental clearance delays
- Death of EIA committee chairman
- Labour shortages, water issues, economic slowdown
RERA’s Verdict: These reasons were unacceptable since the delivery was due in 2015, well before COVID-19. Routine issues cannot be treated as force majeure.
RERA’s Final Judgment:
- Interest Rate: 11.1% per annum
- Time Period: From December 7, 2015 to March 19, 2025 (or until possession)
- Compensation Ordered: ₹65.63 lakh
- Additional Cost: ₹20,000 towards litigation
RERA used Section 18 of the Real Estate (Regulation and Development) Act, 2016, along with Rule 15, to calculate the interest, based on SBI’s highest MCLR + 2%.
Why This Judgment Matters:
According to legal experts :
- Builders must follow deadlines in the agreement.
- Force majeure excuses must meet strict criteria.
- Buyers can’t be denied RERA protections, even if labeled as “investors.”
- One-sided clauses favoring builders are discouraged.
- The SBI MCLR + 2% formula ensures fair and predictable compensation.
- Builders may also be asked to pay legal costs and submit clear account statements.
Key Legal Lessons:
- Delays beyond grace period (usually 180 days) must be justified.
- Common issues like approval delays or water shortages aren’t valid excuses.
- Buyers who don’t cancel but still demand possession are protected under RERA.
