Haryana RERA Orders Emaar MGF To Pay Interest To Homebuyer For Delayed Possession

Haryana Real Estate Regulatory Authority (Authority) bench, comprising Vijay Kumar Goyal (Member) has directed Emaar MGF Land Limited to pay interest to the homebuyer for the delay in handing over possession. Background Facts Homebuyer (Complainant) purchased a flat measuring 1,720 sq. ft. in the builder's (Respondent) project named "Palm Gardens" located in Sector 83, Kherki Daula, Gurugram for a total sale consideration of Rs.1,18,84,181. A Builder-Buyer Agreement was executed between the parties on 19th June 2012. Under the agreement, the builder was obligated to hand over possession within 36 months from the start of construction with a grace period of three months. The project however, faced delays and the builder obtained the occupancy certificate on 17th October 2019. An initial offer of possession was made to the homebuyer on 4th November 2019, followed by the execution of the conveyance deed in the homebuyer's favor on 26th June 2021. The flat upon inspection was found to have several deficiencies which the builder acknowledged. The builder assured the homebuyer that possession would be handed over after rectifying the issues. Consequently, another possession offer was made in September 2020, directing the homebuyer to take possession of the unit. However, due to COVID-19 restrictions and the homebuyer's inability to travel from Goa, where he worked as a doctor, possession was further delayed. Finally Homebuyer travelled to Gurugram and took possession of the flat on 16th March 2021 and signed the unit handover letter on the same day. Aggrieved by the delay in possession, the homebuyer filed a complaint before the authority seeking interest for the delay and Rs.1,00,000 as litigation costs. Observation and Direction by Authority The Authority referred to Clause 10(a) of the buyer's agreement which stated that the builder would hand over possession of the flat within 36 months from the date of start of construction with a grace period of three months for applying and obtaining the occupancy certificate. Based on this clause the Authority allowed the builder to avail the three-month grace period and determined that the due date for possession was 27th May, 2016. Authority held that builder has violated Section 11(4)(a) of RERA, 2016 by failing to deliver possession by the due date specified in the buyer's agreement. As a result the Authority held that the homebuyer is entitled to interest for the delay in possession, calculated from 27th May 2016 (due date of possession) until 4th January 2020 (two months after the offer of possession) at the interest rate of 11.10% p.a. Authority further directed that the amount of Rs.6,16,549 already paid as delay compensation would be adjusted against the payable interest. Lastly, on the issue of legal expense authority held that adjudicating officer has exclusive jurisdiction to deal with the complaints in the respect of compensation and legal expenses. Case – Dr. Shybal Das Versus M/s Emaar MGF Land Limited Citation – Complaint No: 671 of 2023 Date – 16th JanClick Here To Read/Download The Order

Haryana RERA Orders Emaar MGF To Pay Interest To Homebuyer For Delayed Possession

Aryan Raj

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