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Haryana RERA has directed MRG Infrabuild to reinstate a flat in The Meridian, Gurugram, and pay delay compensation at 10.9% per annum. The buyer had already paid more than the total sale price, but the builder cancelled the allotment citing defaults and imposed extra post?Covid demands, later acknowledged as system errors. HRERA found the cancellation invalid, as the promoter failed to provide required notice and missed possession timelines. The authority ordered reinstatement within 30 days and interest payment within 90 days, reinforcing buyer protection in affordable housing.
The Haryana Real Estate Regulatory Authority (HRERA) has directed MRG Infrabuild to reinstate a flat in its affordable?housing project The Meridian in Sector 89, Gurugram, and to pay compensation for delay at the rate of 10.9% per annum. The authority set aside the earlier cancellation of the unit, after finding that the builder had acted against rules and contractual obligations. Advertisement
The case involves a buyer from South Delhi who had booked the flat and paid INR?25.8 lakh, slightly above the listed price of INR?25.5 lakh. The builder had cancelled the allotment in July 2023, citing payment defaults. The buyer had raised concerns that during the Covid period, MRG Infrabuild had repeatedly demanded extra payments with interest, which were later admitted by the builder's officials to be system-generated errors and not actually payable. Despite this, the buyer continued paying the instalments in good faith and eventually completed the full payment, only to face cancellation and additional claims from the promoter.
HRERA noted that under the affordable?housing policy, promoters must provide defaulting allottees at least 15 days' notice after publishing a defaulter list. In this case, the builder cancelled the allotment just two days after such publication, which was inconsistent with the rules. The authority also observed that when the buyer made a payment of INR?1,65,107 on July 21, 2023, he had already paid more than the total sale price, but the builder had neither obtained an occupation certificate nor issued a valid offer of possession.
The regulator considered the developer's claim of additional dues at the time of possession but held the builder responsible for the delay. Applying Section?18(1) of the Real Estate (Regulation and Development) Act, 2016, and Rule?15 of HRERA rules, the authority calculated delay compensation at 10.9% per annum. The original possession date was reckoned as February 28, 2024, factoring in four years from the environmental clearance date plus a six?month Covid-related extension.
HRERA has instructed MRG Infrabuild to reinstate the flat within 30 days and pay all accumulated delay interest within 90 days. The builder is required to continue monthly interest payments until a valid offer of possession is made following the occupation certificate or until actual handover-whichever occurs first. Any remaining principal must be cleared by the buyer after adjusting delay compensation, and the builder is prohibited from demanding any additional amount beyond the agreed sale price.
This order highlights the importance of compliance with statutory timelines in affordable housing projects. It reinforces that buyers' rights are protected when they fulfill their payment obligations, even in cases where developers initially impose additional or incorrect demands. HRERA's decision ensures that the builder not only reinstates the unit but also provides financial compensation for the delays caused, maintaining accountability and fairness in the sector.
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