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The Haryana Real Estate Regulatory Authority (HRERA) has directed Neo Developers to refund INR 42.5 lakh to Atombridge Networks along with 11% annual interest. The dispute arose over the booking of a restaurant unit in the Neo Square commercial project at Sector 109, Gurugram. Although the builder cancelled the unit due to payment delays, HRERA found that no builder-buyer agreement was signed. While the cancellation was upheld, the authority stated the builder must return the amount after deducting 10% as earnest money, citing procedural lapses.
In a recent order, the Haryana RERA has ordered Neo Developers to refund INR 42.5 lakh to Atombridge Networks along with 11% annual interest, after a dispute related to the booking of a restaurant unit in the Neo Square commercial project at Sector 109, Gurugram. Advertisement
The booking had been cancelled by Neo Developers in December 2022, citing non-payment of dues. Atombridge Networks approached RERA alleging that the cancellation was arbitrary, and that the builder continued demanding payments despite no update on construction status. It was also noted that no builder-buyer agreement had been executed even after significant payment was made.
HRERA held that the cancellation of the unit was valid under Section 19(6) of the RERA Act due to the absence of a formal agreement. However, the regulator pulled up Neo Developers for collecting substantial payment without executing the agreement and ruled that the amount must be refunded with 11% annual interest from the date of cancellation till the date of actual payment. It also ordered a 10% deduction as earnest money.
During the proceedings, Neo Developers submitted that the buyer had defaulted on payments and that construction work had not yet progressed. However, the regulator observed that the project had already received its occupation certificate in October 2024, and the buyer's claim about lack of construction update was not valid.
HRERA refused to order restoration of the cancelled unit or execution of the agreement, noting that the relationship between the buyer and developer had already ended following the cancellation. The authority concluded that the refund, with deduction and interest, was the appropriate resolution, especially since the developer acted without legal formalities.
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