Allottees Already Granted Delay Interest Not Entitled For Additional Compensation; Haryana RERA

The Haryana Real Estate Regulatory Authority (“Authority”) Adjudicating Officer, Rajender Kumar, has held that an allottees who have already been awarded interest for delayed possession by the Authority are not entitled to claim any further compensation before the Adjudicating Officer. In the present case, the complainant approached the Authority seeking additional compensation from the builder, contending that the delay interest granted by the Authority on 28 September 2021 was insufficient. Background Facts Complainant bought a shop in the builder's (“Respondent”) project named “The Merchant Plaza” in Sector 88, Gurugram in February 2015. The total price was 56.87 lakh under a construction-linked payment plan. Builder buyer agreement was signed on 12 June 2015. Under this agreement, the builder had to hand over possession by 30 May 2017. That did not happen. The builder delayed the project and the complainant ended up paying a total of 51.55 lakh to the builder. After waiting more than five years beyond the promised possession date, the complainant approached the Adjudicating Officer seeking 5 lakh for mental and physical agony, 3 lakh towards litigation cost and 10 lakh under the appreciation value. Complainant alleged that the builder violated Section 11(4), engaged in unfair trade practices, failed to provide agreed facilities, and also failed to execute the conveyance deed, thereby breaching obligations under the Real Estate (Regulation and Development) Act, 2016. Contentions of Builder The builder argued that the complainant had already approached the RERA in Complaint No. 3041/2020 for delay-possession charges, and the Authority had allowed that complaint on 28 September 2021. The builder has filed an appeal against that order before the Real Estate Appellate Tribunal (REAT), which is still pending. The builder further submitted that the complainant failed to disclose the pendency of this appeal. Therefore, since delay-interest has already been awarded for the same cause of action, the present complaint seeking additional compensation should be dismissed. Observation and Direction by Adjudicating Officer The Adjudicating Officer ( AO) held that since the complainant had already been granted interest for the delay in handing over possession by the Authority in an earlier proceeding, he is not entitled to any further compensation on the same ground. The AO relied on the decision of the Uttar Pradesh Real Estate Appellate Tribunal in Appeal No. 70 of 2023, which held that allottees who exit the project are entitled to both interest and compensation, whereas allottees who continue in the project are entitled only to interest for every month of delay until possession. AO also referred to the Bombay High Court in Neelkamal Realtors Suburban Pvt. Ltd. & Ors. and the Apex Court in DLF Homes Panchkula Pvt. Ltd. & Anr., which clarified that allottees staying in the project are entitled to interest for every month of delay. The interest compensates for the deprivation of the use of their investment. With respect to the complaint about the conveyance deed, the Adjudicating Officer observed that issues arising under Sections 11(4) and 17 lie outside the jurisdiction of the AO. Under Section 71 of RERA, the AO can adjudicate compensation only for violations of Sections 12, 14, 18 and 19. Accordingly, the complainant was advised to approach the Authority for any relief regarding the conveyance deed. Since no case for further compensation was made out, the complaint was dismissed. Case – Sharad Bhargava HUF versus M/S Silver Glades Infrastructure Pvt. Ltd. Citation – Complaint No. 15-2023 Counsel for Complainant- Mr. Kuldeep Kumar Kohli, Adv Counsel for Respondent – Mr. Harshit Batra and Ms. Tanya, Adv Click Here To Read/Download Order

Allottees Already Granted Delay Interest Not Entitled For Additional Compensation; Haryana RERA

Aryan Raj

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