Failure To Deliver Possession: Haryana RERA Orders Parsvnath Developers To Pay Monthly Returns, Execute Conveyance Deed

Haryana Real Estate Regulatory Authority (“Authority) bench comprising of Ashok Sangwan (Member) directed Parsvnath Developers to pay assured returns, hand over possession of the commercial unit, execute the conveyance deed and enter into a buyer's agreement with the complainant. The builder had sold the commercial unit under an MOU arrangement in 2006 but did not enter into any written buyer agreement with the buyer. The possession, which was scheduled for 2009 was also not handed over. Furthermore, the builder had not registered the project with RERA, due to which the Authority had already taken suo motu cognizance of the non-registration, which is presently pending before the Authority. Background Facts In 2006, the complainant was allotted a commercial unit in the builder's (Respondent) project named “IT Park Colony” located in Sector 48, Gurugram through MOU. The total sale consideration for the unit was Rs.15 lakh, out of which the complainant paid Rs.13.5 lakh. As per Clause 2 of the MoU, the builder was liable to pay an assured return of Rs. 26.09 per sq. ft. per month (Rs. 26,090) from October 1, 2006 till the date of offer of possession of unit. Under Clause 3, the builder was further liable to pay an assured return of Rs. 27.50 per sq. ft. per month (Rs. 27,500) from the date of offer of possession till the date of execution of the lease for unit. According to Clause 12 of the MoU, the builder was required to execute a flat buyer agreement within two months of the approval of the building plans for the project. However, the builder failed to do so till date. The builder was also obligated to complete construction and offer possession of the booked unit within three years from the date of execution of the MoU. Aggrieved by the builder's failure to fulfil these obligations, the complainant filed a complaint before the Authority seeking assured returns, delay possession charges, possession of the unit, execution of the conveyance deed and imposition of penalties. Observation and Direction by Authority Authority observed that it was the builder's obligation to pay the assured return as agreed under the MoU. Authority noted that the builder failed to fulfil this obligation and had not yet offered possession of the unit since the occupation certificate for the project had not been obtained. Authority further observed that the complainant would be entitled to either assured returns or delay possession charges whichever is higher under Section 18(1) of the RERA Act. Since MoU specifically provided for assured returns until the offer of possession, Authority concluded that complainant will receive assured returns. Authority held that the builder's liability to pay the assured return continues. Accordingly, the builder is required to pay the assured return at the agreed rate of Rs. 26,090 per month (inclusive of TDS) from 01.10.2006 till the date possession of the unit is offered after receiving the occupation or completion certificate after adjusting any amount already paid. Authority further held that the builder is also liable to pay an assured return of Rs. 27.50 per sq. ft. per month from the date of receipt of the balance sale consideration after obtaining the occupation or completion certificate until the unit is leased out. Authority also directed the builder to execute a registered buyer's agreement, hand over possession of the unit and complete the conveyance deed in favour of the complainant within three months of obtaining the occupation certificate. Case: Ajai Pal Singh Gill & Others Versus M/s Parsvnath Developers Ltd. Citation: Complain No. 2340 of 2024 Counsel for Complainant: Adv. Harshit Goyal Counsel for Respondent: Adv. Nitish H GuptaClick Here To Read/Download The Order

Failure To Deliver Possession: Haryana RERA Orders Parsvnath Developers To Pay Monthly Returns, Execute Conveyance Deed

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Failure To Deliver Possession: Haryana RERA Orders Parsvnath Developers To Pay Monthly Returns, Execute Conveyance Deed

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