Haryana RERA Directs Ocean Seven Buildtech To Pay Interest To Homebuyer Of Expressway Towers For Delayed Possession

Haryana Real Estate Regulatory Authority (Authority) bench comprising Ashok Sangwan (Member) has directed Ocean Seven Buildtech to pay interest to the homebuyer of the Expressway Towers project. Additionally, the Authority directed the builder to execute the conveyance deed, not force the homebuyer to sign any indemnity, provide the exact layout plan of the flat and avoid imposing blanket maintenance charges. Background Facts Homebuyer (Complainant) was allotted a flat in the builder's (Respondent) affordable housing project named Expressway Towers, located at Sector 109, Gurugram on 21 September 2017. A buyer's agreement was signed between the parties on 17 June 2017. As per the applicable affordable housing policy, the project had to be completed within four years from the date of building plan approval or environmental clearance, whichever came later. The homebuyer paid Rs. 19,10,340 out of the total sale consideration of Rs. 26,29,500 as per the builder's payment plan. However, despite receiving most of the payment, the builder failed to show significant progress in construction. The buyer regularly contacted the builder and even visited their office but the builder failed to provide any proper update or satisfactory response about the construction status. Aggrieved, the homebuyer approached the Authority seeking directions to pay delay possession charges with interest, hand over possession, execute the conveyance deed in her favour, not force her to sign any indemnity-cum-undertaking as a precondition to the conveyance deed, provide the exact layout plan of the unit, not charge monthly maintenance for 12 months and not impose any irrelevant or unjustified charges. Observation and Direction by Authority Authority referred to Clause 1(iv) of the Affordable Housing Policy, 2013, which mandates that all such projects must be completed within 4 years from the date of either building plan approval or environmental clearance, whichever is later. Authority after considering the dates of building plan approval and environmental clearance along with the 6-month extension granted by the government in May 2020 due to the COVID-19 pandemic determined that the revised due date for handing over possession was 30.05.2022. Authority held that the builder violated Section 11(4)(a) by failing to hand over possession by the due date, which was 30.05.2022. Further, it observed that the builder was in breach of its obligations and since there is no document showing application for occupation certificate or construction status the project is to be treated as ongoing. Therefore, Authority directed the builder to pay interest to the homebuyer under Section 18 at the prescribed rate of 11.10% per annum on the paid-up amount for each month of delay from 30.05.2022 until a valid offer of possession plus two months after obtaining the occupation certificate or actual handover whichever is earlier. Authority held that as per Section 17(1), the builder is duty-bound to execute the conveyance deed within three months of obtaining the occupation certificate, upon payment of applicable stamp duty and registration charges by the homebuyer. Regarding conditional indemnities, Authority referred to its earlier decision in Varun Gupta v. Emaar MGF Land Ltd. and held that the builder cannot impose any conditions or require the buyer to sign any indemnity that is prejudicial to their rights at the time of execution of the conveyance deed. With respect to access to project details, Authority noted that under Section 19(1), the homebuyer has a right to obtain the sanctioned layout plan and specifications. The builder was accordingly directed to provide the exact layout plan of the unit within three months of the order. As for maintenance charges, Authority referred to DTCP Haryana's order dated 31.01.2024 and clarified that only charges listed under Category-II of the order can be recovered and these must be based on actual consumption. Therefore, no blanket maintenance fees can be imposed by the builder. Case – Darshana Hooda Versus M/s Ocean Seven Buildtech Pvt. Ltd. Citation – Complaint no - 556 of 2024 Date – 23/04/2025Click Here To Read/Download The Order

Haryana RERA Directs Ocean Seven Buildtech To Pay Interest To Homebuyer Of Expressway Towers For Delayed Possession

Aryan Raj

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