Haryana RERA Directs Apex Buildwell To Pay Interest To Four Homebuyers

Haryana Real Estate Regulatory Authority (Authority) bench, comprising Ashok Sangwan (Member), has directed M/s Apex Buildwell Pvt. Ltd. to pay interest to four homebuyers of the affordable housing project named Our Homes, situated in Sector-37, Gurugram, Haryana.Background FactsAll four homebuyers (Complainants) purchased a flat each, measuring 516.67 sq. ft, in the builder's (Respondent) affordable housing project named "Our Homes," situated in Sector-37, Gurugram. The total consideration for their flats was Rs. 16,00,000/-, which has been completely paid by all the homebuyers. A Buyer's Agreement was executed between the builder and the homebuyers on March 1, 2013. According to Clause 3(a) of the agreement, the builder agreed to deliver possession of the flats within 36 months, plus a 6-month grace period from the date of commencement of construction.However, despite receiving the full payment from all four homebuyers, the builder failed to deliver possession of the flats by the promised date, March 1, 2016. The homebuyers contended that they personally contacted the builder for an update on construction and were falsely assured that the construction would be completed soon. Eventually, after multiple follow-ups and reminders, the builder offered possession on November 30, 2019.Aggrieved by the delayed possession, all four homebuyers separately filed complaints against the builder, seeking delayed possession interest, a refund of amounts collected under different heads, the return of unreasonably charged amounts, and to set aside the indemnity bond.Observation and Direction by AuthorityThe Authority held that the builder violated Section 11(4)(a) of the RERA, 2016 by failing to hand over possession by the agreed date. According to Clause 5(iii)(b) of the Affordable Housing Policy 2013, possession should be handed over within 4 years from the date building plans were sanctioned or environmental clearance was received, whichever is later. Since the builder received environmental clearance on 26.06.2013, the due date for handing over possession was 26.06.2017. Therefore, homebuyers are entitled to receive interest for the delayed possession under Section 18(1) of RERA, 2016.On the issue of returning the money unreasonably charged by the builder, the Authority held that it cannot entertain such claims as the financial liabilities between the builder and the homebuyer end after the execution of the conveyance deed. Lastly, on the issue of the one-sided indemnity bond, the Authority directed the builder not to place any conditions or ask the homebuyers to sign an indemnity of any nature whatsoever, which is prejudicial to their rights.Case – Mr. Brij Bhushan Sharma & anr Vs M/s Apex Buildwell Pvt. Ltd. A/W 3 OthersCitation - Complaint No. 4705 of 2023 A/W 3 Others

Haryana RERA Directs Apex Buildwell To Pay Interest To Four Homebuyers

Aryan Raj

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Haryana RERA Directs Apex Buildwell To Pay Interest To Four Homebuyers

Aryan Raj

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