Registered Conveyance Deed Does Not Constitute Lawful Possession Without Completion Approval: Haryana RERA

The Haryana Real Estate Regulatory Authority (HRERA) has recently ruled that execution of a registered conveyance deed does not amount to lawful delivery of possession where the promoter has not obtained the statutory approvals required to make the property legally usable.

It ruled that merely transferring title does not absolve a builder of liability for delayed possession.

The ruling was delivered by Member Dr. Geeta Rathee Singh while allowing four complaints filed by homebuyer Gaurav Joon against JBG Buildcon Pvt. Ltd. over residential plots in the developer's "AMI Greens" project at Sector-3A, Bahadurgarh.

"Mere transfer of title, however, cannot automatically be equated with lawful delivery of possession where the project itself had not obtained the requisite completion approval from the competent authority. The statutory obligation of a promoter under the Act extends beyond execution of title documents and includes completion of the project in accordance with sanctioned plans and obtaining all necessary approvals before handing over possession. Because the allottee entered into a contract to purchase a fully developed plot rather than an unimproved tract of land the transfer is legally illusory ("a mere paper transfer") if the allottee is denied the ability to utilize the property due to the respondent's failure to obtain required statutory approvals.", the court ruled.

Joon received allotment letters for four residential plots on December 17, 2018. Under the agreements for sale executed on June 10, 2019, JBG Buildcon was required to hand over possession by June 10, 2021. However, the project's completion certificate was issued only on July 4, 2024.

Joon alleged that despite paying the full sale consideration, the developer refused to issue a no-objection certificate (NOC), preventing him from using the plots, while demanding over ₹2.85 lakh as delayed-payment interest.

The builder argued that execution of the conveyance deeds ended the promoter-allottee relationship, making the dispute purely contractual and outside the Authority's jurisdiction. It also maintained that the NOC could be withheld until the buyer cleared the outstanding dues claimed by the company.

Rejecting the preliminary objection, the Authority held that execution of a conveyance deed does not extinguish statutory obligations already accrued against a promoter or bar an allottee from seeking relief for earlier violations. It fixed June 10, 2021 as the due date for possession and held that the builder's liability to pay delay interest commenced from that date.

"Section 14(3) contemplates continuing obligations of the promoter even after possession is handed over. These provisions demonstrate that execution of a conveyance deed does not extinguish liabilities which had already accrued against the promoter on account of non-fulfilment of contractual or statutory obligations." , the authority ruled.

Allowing all four complaints, the Authority directed JBG Buildcon to pay delay possession interest under the Real Estate (Regulation and Development) Act from June 10, 2021 until actual lawful possession is handed over

For Complainant (Gaurav Joon): Advocate Naveen Single

For Respondent (JBG Buildcon Pvt. Ltd.): Advocate Pankaj, proxy counsel for Advocate Manju Goyal