Haryana RERA Directs Imperia Structures To Pay Assured Returns To Complainant

Haryana Real Estate Regulatory Authority (Authority) bench, comprising Ashok Sangwan (Member) directed Imperia Structures to pay assured returns to complainant who purchased an office in their IT Park. While directing the builder, the Authority clarified that if an allottee is entitled to both assured return and delay possession charges, the allottee shall receive whichever is higher. Background Facts Complainant purchased a virtual space office in the builder's (Respondent) IT Park named “Mindspace” located in Sector 52, Gurugram. The total sale consideration of the office was Rs. 17,07,405. A Unit Buyer's Agreement was signed between the parties on 08.09.2016, under which all payments were to be made by 31.08.2017. After making the entire payment, a No Due Certificate was issued in favour of the complainant on 18.09.2019. As per the agreement, the builder assured the complainant a monthly return of Rs. 29,310/- from 01.09.2017 until a valid offer of possession was made. The agreement also provided for leasing at a minimum rent of Rs. 58/- per sq. ft. with compensation payable if the rent achieved was lower. Occupation Certificate was obtained on 02.06.2020. However builder neither offered valid possession nor executed the leasing arrangement. The assured return also remained unpaid. Instead builder issued a demand letter dated 07.08.2023 for holding and maintenance charges. Being aggrieved, complainant approached Authority seeking directions to builder to pay assured returns as per agreement, hand over possession with delay interest, fulfill agreed leasing arrangement and revoke the demand letter. Contentions by Imperia Structures Builder contended that delay in completion of the project was due to force majeure conditions. They argued that the Covid-19 outbreak, the ban on construction imposed by orders of the Supreme Court and non-payment of instalments by several allottees led to the delay. Observation and Direction by Authority Authority observed that the builder had collected money in advance for allotment of the unit and promised to pay assured returns until possession was offered. Since the builder failed to keep this promise, the complainant was entitled to seek redressal before the Authority. Authority noted that there was a delay on the part of the builder in handing over possession of the unit within the agreed time. The key question before the Authority was whether an allottee who is entitled to assured returns even after the due date of possession can also claim delay possession charges. Authority observed that the purpose of delay possession interest is to safeguard the allottee's money when the builder continues to use it beyond the promised date of possession. This ensures that the allottee is compensated for the time value of money which remains blocked due to the builder's delay. Authority further clarified that when assured return is reasonable and continues even after the due date of possession, it adequately protects the allottee's interest. In such situations, the allottee will be entitled to either assured return or delay possession charges whichever is higher without prejudice to other remedies including compensation. Authority held that as assured return was payable until the offer of possession. Since the occupation certificate was obtained on 02.06.2020 and possession was offered on 22.06.2020, the builder is directed to pay assured return at the agreed rate of Rs. 29,310 per month from 01.09.2017 until 22.06.2020 after adjusting any amount already paid to the complainant. Lastly, Authority set aside the demand for holding and maintenance charges. However, the builder was allowed to charge maintenance charges from the complainant from the date of offer of possession. Case – Amravati Devi versus M/s Imperia Structures Limited Citation –Complaint No. 4136 of 2024Click Here To Read/Download Order

Haryana RERA Directs Imperia Structures To Pay Assured Returns To Complainant

Aryan Raj

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