RERA Impact: Homebuyer Gets Rs 2.26 Crore Compensation for Decade-Long Delay.
In a landmark ruling, the Haryana Real Estate Regulatory Authority (RERA) has given a compensation of Rs 2.26 crore to a homebuyer who suffered an agonizing 10-year delay in receiving possession of her flat. The case highlights how RERA works to protect homebuyers and bring builders on their toes about project delays.
The complainant had paid Rs 1.07 crore in 2013 for a flat promised by a reputed builder. Despite repeated assurances over the years, the construction was never completed. Instead, the builder shifted the complainant's investment between various projects, citing reasons of non-completion and offering no resolution. By 2023, the homeowner had neither possession of a unit nor any substantial explanation for the delays.
The matter came before Haryana RERA. It held that the builder committed various defaults against the provisions of the Real Estate (Regulation and Development) Act, 2016. It further added that the actions taken by the builder had caused immeasurable loss to the complainant in the shape of monetary loss and mental anguish. Thus, it ordered high compensation.
Main Legal Provisions Relied Upon: - Haryana RERA relied upon the following provisions of the RERA Act in reaching its order:
1. Section 18(1): Entitles refund and compensation in case the builder fails to complete or hand over possession as agreed upon.
2. Section 19(4) guarantees a buyer's right to timely possession of the property for which he has paid.
3. Section 31: Enables homebuyers to file complaints against builders for any violations of the Act.
The respondent (builder) has been holding the amount paid by the complainant since 2013 and kept on changing the units of the complainants from one project to another. Even after a delay of more than 10 years, no unit has been delivered by the respondent to the complainants (homebuyers) till date." RERA concluded in its compensation order.
After considering the evidence, Haryana RERA directed the builder to pay a compensation of Rs 2.26 crore to the homebuyer, which includes:
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Refund of the amount paid initially (Rs 1.07 crore).
Interest for the 10-year delay. Penalties for the mismanagement of the project and emotional distress caused to the homebuyer.
The Importance of This Judgment. This case is a great example of how RERA can hold the real estate sector accountable. It shows that Homebuyers have a strong legal recourse for delays or malpractices by builders Builders cannot indefinitely delay projects or manipulate investments without facing consequences.
RERA is a crucial mechanism for bringing transparency and fairness to real estate transactions. A Message for Homebuyers and Builders
This ruling will remind homebuyers to take the provisions of RERA to safeguard their rights and demand accountability from builders. It will also tell builders to respect project timelines and be transparent so that they are not subjected to legal repercussions.
The Haryana RERA ruling becomes a beacon of hope for all homebuyers in India and proves that justice can prevail even after prolonged delays. As the real estate sector keeps evolving, RERA continues to be a pillar of support for trust and fairness in property dealings.