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HRERA Caps Builder Delay Payouts at OC Date, Orders Buyer to Clear Dues

The Haryana RERA has issued a balanced order in a dispute involving Emaar India and an allottee. It capped the promoter's delay compensation liability only until the occupation certificate date, deviating from the typical "possession plus two months" rule. Simultaneously, it directed the allottee to clear all outstanding dues with applicable interest. The ruling underscores the authority's focus on enforcing the reciprocal obligations of timely payment and delivery. This decision highlights RERA's role in ensuring fairness between developers and homebuyers.

Key Points: HRERA Balances Emaar Case: Caps Delay Interest, Orders Dues Payment

  • Delay compensation capped at OC date
  • Allottee directed to clear dues with interest
  • Emphasizes reciprocal obligations
  • Balances rights of developers and buyers
2 min read

HRERA balances equities in Emaar case, caps delay compensation at occupation certificate; allottee directed to clear dues with interest

HRERA Gurugram's order in Emaar case limits delay compensation to occupation certificate date, directs allottee to clear dues with interest, emphasizing balanced equity.

"the Authority departed from the usual practice... limited the entitlement to delay interest to the date of issuance of the occupation certificate - HRERA Order"

New Delhi, January 1

The Haryana Real Estate Regulatory Authority, Gurugram, has passed a balanced and reasoned order while adjudicating a complaint filed by Harsh Kharbanda, an allottee in the "Colonnade" commercial project at Sector 66, Gurugram, being developed by Emaar MGF Land Ltd., now known as Emaar India Ltd.

While examining the dispute under the provisions of the Real Estate (Regulation and Development) Act, 2016, the Authority took note of defaults on both sides.

HRERA recorded that the promoter had delayed completion of the project and found that the allottee was in substantial default in the timely payment of dues for the commercial unit.

Considering the reciprocal obligations of the parties, timely delivery by the promoter and timely payment by the allottee, the Authority departed from the usual practice of awarding delay compensation until the offer of possession plus two months.

Instead, HRERA limited the entitlement to delay interest to the date of issuance of the occupation certificate, plus an additional two months.

The Authority further directed the promoter to deliver possession of the unit, together with all promised amenities and specifications.

Simultaneously, the allottee was ordered to clear the outstanding dues, together with applicable interest, in full within the prescribed time.

The decision underscores the Authority's emphasis on maintaining fairness and balance between the rights and obligations of both allottees and developers in the real estate sector. The complainant was represented by Advocate Shweta, while Advocate Harshit Batra appeared on behalf of the respondent developer before the Authority.

- ANI

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Reader Comments

S
Shreya B
While I appreciate the balanced approach, I feel for the allottee. The market is tough, and sometimes payments get delayed due to genuine financial crunches. Builders like Emaar have deep pockets; a little more leniency could have been shown. The interest on dues will be a heavy burden.
R
Rohit P
Finally, a sensible order! In Gurugram, so many buyers stop paying instalments intentionally, thinking they can just claim heavy compensation later. This judgment sends a clear message: pay your dues. The RERA Act is for regulation, not for one-sided benefit.
P
Priya S
The key point is "reciprocal obligations." A contract is a two-way street. Hope other RERA authorities across India take note. This will improve discipline on both sides and might actually help projects get completed faster if cash flow is assured.
A
Aman W
Capping compensation at OC date is a bit of a relief for builders, but they must now deliver all amenities as promised. The order says "together with all promised amenities." Buyers, make sure you check everything before taking possession! Don't let them off the hook for poor quality.
M
Michael C
As an NRI investing in Indian real estate, this kind of judicial clarity is very reassuring. It shows the system is maturing and moving away from emotional decisions to ones based on the contract. Makes me more confident about the market's legal framework.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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