Valid Possession Offer Before Due Date Bars Homebuyer's Delay Compensation: Haryana REAT

The Haryana Real Estate Appellate Tribunal (REAT) on 31 August held that a homebuyer cannot claim delayed-possession charges where the promoter made a valid offer of possession before the stipulated possession date, even if physical possession was handed over later.

A Bench comprising Chairman Justice Rajan Gupta and Technical Member Dinesh Singh Chauhan dismissed an appeal filed by homebuyer Urmila Kumari Kadam and upheld the Gurugram Haryana Real Estate Regulatory Authority's order refusing delayed-possession charges against Y.B. Builders Pvt. Ltd. and Nimai Developers. It held:

“The promoters made offer of possession to the allottee on 01.04.2023, which constitutes valid offer of possession. The Authority rightly observed that as 'valid offer of possession' was given to the allottee, she is not entitled for any delay possession charges.”

The dispute arose from Kadam's booking of a unit in the Nimai Palace project developed by Y.B. Builders Pvt. Ltd. The total sale consideration was Rs. 67,37,923, of which she had paid Rs. 50 lakh. No Builder Buyer Agreement was executed between the parties.

The possession due date was calculated as 11 June 2023. The project received an Occupation Certificate in principle on 10 February 2023, while the final Occupation Certificate was granted on 12 April 2023. The promoters, however, offered possession to Kadam on 1 April 2023, before the calculated possession due date.

Kadam approached the Haryana Real Estate Regulatory Authority on 1 July 2025, seeking delayed-possession charges until actual handing over of possession along with other reliefs.

The promoters opposed the claim, contending that Kadam had failed to adhere to the payment schedule despite repeated communications. They also submitted that she had not come forward to execute the Builder Buyer Agreement despite being asked to do so.

By its order dated 12 March 2026, the Haryana Real Estate Regulatory Authority rejected Kadam's claim for delayed-possession charges. It directed her to clear the outstanding dues and permitted the promoters to charge interest at the prescribed rate of 10.80% in case of default.

The Authority also directed the promoters to hand over physical possession within 30 days of payment of the outstanding dues, if any, and execute the conveyance deed within 90 days upon payment of the requisite charges.

Kadam challenged the order before the Haryana Real Estate Appellate Tribunal, arguing that the Authority had wrongly calculated the possession due date and erred in refusing delayed-possession charges.

The Tribunal rejected the challenge. It noted that the promoters had already received more than 10% of the sale consideration despite no Builder Buyer Agreement having been executed.

It further found that the Authority had correctly calculated the possession due date as 11 June 2023 and that the promoters' offer dated 1 April 2023 constituted a valid offer of possession. Since the valid offer was made before the possession deadline, the Tribunal held that Kadam was not entitled to delayed-possession charges.

Accordingly, finding no legal infirmity in the Authority's order, the REAT dismissed the appeal and the accompanying applications.

Appearances for petitioner (Appellant): Advocate Ritesh Kumar Pandey.