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Haryana RERA has directed Agrante Realty to compensate buyers of its delayed Kavyam affordable housing project, after the developer failed to hand over possession despite collecting nearly the full sale amount. Acting on four complaints, the authority ordered interest payments of 11.1% per annum on sums paid by buyers, effective from the due date of possession until units are delivered. The rate, based on SBI's lending cost plus 2%, reflects market norms. Importantly, the ruling will apply mutatis mutandis to all similar cases, setting a strong precedent for accountability. The decision strengthens homebuyer protections and underscores RERA's role in ensuring timely project delivery.
Taking a firm stand against project delays, the Haryana Real Estate Regulatory Authority (RERA) has ordered Agrante Realty to provide compensation to buyers of its Kavyam affordable housing project. The directive comes after the developer failed to hand over possession of the flats by the agreed-upon deadline, despite having collected almost the entire sale consideration from the allottees. Advertisement
The RERA order, which was passed in response to four separate complaints, mandates a monthly interest payment of 11.1% per annum on the amounts deposited by the homebuyers. The compensation is effective from the due date of possession until the time the builder formally hands over the units. The interest rate is a clear reflection of the prevailing market conditions, calculated as the State Bank of India's marginal cost of lending rate plus 2%.
While the order was issued for a specific set of complaints, the RERA authority clarified that the ruling "would apply mutatis mutandis to all similar complaints" against the project, signaling a broad and definitive action against the developer. This decision provides a crucial precedent for homebuyers facing similar delays and reinforces RERA's authority as a key regulator in ensuring accountability and timely project delivery in the real estate sector. The ruling provides a clear path for affected buyers to seek financial restitution and restores faith in the regulatory framework designed to protect their investments.
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