Haryana RERA Directs Parsvnath Developers To Pay Delay Interest And Execute Conveyance Deed In Favour Of Homebuyer

Haryana Real Estate Regulatory Authority (Authority) bench, comprising Ashok Sangwan (Member), has directed Parsvnath Developers Limited, the builder, to pay delay interest and execute the conveyance deed in the favour of homebuyer. As per the agreement the builder was supposed to handover possession to the homebuyer by April 2011. A conveyance deed is a legal document that transfers ownership of property from the seller to the buyer. It details the terms of the transfer, including the property's description and the rights being transferred. Background Facts The original allottee booked a flat in the builder's project named Parsvnath Exotica, located in Sector 54, Gurugram, and made payments totaling Rs. 6,75,000 to the builder on October 4, 2004. The original allottee later sold the flat to another person (subsequent allottee) with the builder's permission. The subsequent allottee then made payments totaling Rs. 20,55,625 as per the payment plan. On July 13, 2005, a flat buyer agreement was executed between the subsequent allottee and the builder, stipulating that possession of the flat was to be delivered within 36 months, plus a 6-month grace period, from the commencement of construction. By March 10, 2012, the subsequent allottee had made payments totaling Rs. 92,56,375 to the builder. On October 13, 2022, the builder offered possession of the flat for fit-outs, providing a rebate of Rs. 7,50,000 for unfinished items. However, the flat was still incomplete, lacking essential amenities and an Occupation Certificate (OC). The builder assured that the OC would be obtained within a month. Under these circumstances, the subsequent allottee took possession of the flat for fit-out purposes only. On December 20, 2022, the homebuyer (complainant/subsequent allottee no. 2) purchased the flat from the subsequent allottee no. 1 for Rs. 1,50,00,000, paying the full amount. The builder updated their records to reflect the homebuyer as the new allottee on December 22, 2022, but charged Rs. 6,86,733 as transfer fees and increased the flat's super area without justification. The builder paid Rs. 9,15,300 as delay possession charges to the homebuyer, but this amount was insufficient. As a result, the homebuyer filed a complaint before the authority seeking possession, execution of the conveyance deed, and delay interest. Observation and Direction by Authority The Authority observed that, according to clause 10(a) of the agreement dated July 13, 2005, possession of the allotted unit was to be offered within 36 months from the commencement of construction, plus a 6-month grace period. Further, referring to the customer ledger and payment plan in the complaint, which indicated that construction of the block began on October 17, 2007, the Authority concluded that the due date for possession was April 17, 2011. The Authority found that the builder violated Section 11(4)(a) of RERA, 2016 by failing to hand over possession of the apartment by the agreed-upon date. Consequently, the Authority directed the builder to pay interest to the homebuyer at a rate of 11.10% per annum. Furthermore, the Authority held that the builder's offer of fit-out possession made on October 13, 2022, was invalid, as the builder had yet to obtain the occupation certificate for the project. The Authority directed the builder to hand over possession of the flat and execute the conveyance deed in favor of the homebuyer in accordance with Section 17(1) of RERA, 2016, within three months after obtaining the occupation certificate from the competent authority. Case – Ram Niwas Rathee Versus Parsvnath Developers Limited & anr Citation - Complaint No. 234 of 2023 Click Here To Read/Download Order

Haryana RERA Directs Parsvnath Developers To Pay Delay Interest And Execute Conveyance Deed In Favour Of Homebuyer

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Haryana RERA Directs Parsvnath Developers To Pay Delay Interest And Execute Conveyance Deed In Favour Of Homebuyer

Aryan Raj

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