Haryana RERA Directs Signature Global To Pay Interest To Homebuyer Of Affordable Group Housing Project

Haryana Real Estate Regulatory Authority (Authority) bench, comprising Ashok Sangwan (Member), has directed M/s Signature Global India Private Limited to pay interest to homebuyer from its Affordable Group Housing Project for delayed possession. Affordable housing projects in Haryana provide housing unit at set prices and size for people with below-average household incomes. Background Facts: The homebuyer (Complainant) was allotted a flat in the builder's (Respondent) Affordable Group Housing Colony project named "The Millennia" located in Sector 37D, Gurugram, through an allotment letter dated 26th July 2018. The total sale consideration for the flat was Rs. 23,83,548. Subsequently, the homebuyer and the builder entered into a Builder Buyer Agreement on 5th October 2018. According to the agreement, the builder was supposed to hand over possession of the flat within 60 days from the date of issuance of the occupancy certificate. The homebuyer paid a total of Rs. 22,52,457 to the builder against their demands. However, the homebuyer faced delays in receiving possession of the flat. Despite multiple emails and calls from the homebuyer requesting possession, the builder failed to respond satisfactorily and only assured that the matter would be settled at the time of possession. Aggrieved by the delay in receiving possession, the homebuyer filed a complaint before the authority seeking possession of the flat and interest for the delay. Observation and Direction by Authority Authority observed that as per the Clause 1(iv) of the Affordable Housing Policy, 2013, builder has to handover the possession of flat within 4 years from the date of approval of building plan or from the date of grant of environment clearance, whichever is later. Based on this clause, the authority calculated the due date for possession of the flat. The authority noted that the project received environmental clearance on 21.08.2017. Considering the 4-year period plus a 6-month grace period due to the COVID-19 pandemic, the due date for possession is 21.02.2022. Authority also observed that the builder violated Section 11(4)(a) of the Act by failing to hand over possession of the flat by the due date specified by the Affordable Housing Policy, 2013. As a result of this failure, the authority concluded that the homebuyer is entitled to seek interest as per Section 18(1) of the RERA, 2016. Therefore, the Authority directed the builder to pay interest at the rate of 11.10% per annum to the homebuyer. Furthermore, the Authority directed the builder to charge interest from the homebuyer for the delay in making payments at the same rate of 11.10% per annum and exempted the homebuyer from paying interest during the COVID period. Case – Vashisht Arora Versus Signature Global (India) Private Ltd Citation – Complaint no: 5131 of 2023 Date – 18 DecemberClick Here To Read/Download The Order

Haryana RERA Directs Signature Global To Pay Interest To Homebuyer Of Affordable Group Housing Project

Aryan Raj

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