Haryana RERA Awards ₹26.96 Lakh For Loss Of Appreciation Due To Delay In “The Heartsong” Project

The Haryana Real Estate Regulatory Authority on 6 May held that a homebuyer is entitled to compensation for loss of property appreciation arising from delayed possession, and directed Experion Developers to pay Rs. 26.96 lakh on this account, along with additional compensation and costs.

Adjudicating Officer Rajender Kumar observed that residential property prices in Sector 108, Gurugram had witnessed substantial appreciation over the years and assessed compensation on the basis of notional investment growth. He held:

“Residential property in Sector-108 has been a massive appreciation over the long term, with some data suggesting flat prices grew by over 130% in the last 5 years (relative to early 2023). It is presumed that if the amount paid by the complainant ie. Rs.20,73,670/- up to 30.07.2016 (date of payment) was invested in some other similar project, it would have appreciated to Rs.26,95,771/-.”

The homebuyer had purchased a flat in the project “The Heartsong” in Sector 108, Gurugram in 2012 for Rs. 82.95 lakh. No agreement for sale was executed by the developer. The homebuyer paid Rs. 20.73 lakh by 2016.

As per the provisional allotment letter, the developer was required to hand over possession within three years of booking, i.e., by 3 December 2015. However, it failed to do so and obtained the Occupation Certificate only in 2017.

Aggrieved by the delay, the homebuyer first approached the Authority seeking refund of the amounts paid. The Authority directed a refund of Rs. 20.73 lakh along with interest at 10.60% per annum. The homebuyer thereafter approached the Adjudicating Officer seeking Rs. 5 lakh towards compensation for loss and mental harassment and Rs. 2 lakh towards litigation costs.

The Authority noted that property prices in Gurugram Sector 108 and the Dwarka Expressway corridor had increased significantly between July 2016 and February 2023. Relying on market data indicating appreciation of over 130% during this period, it held that the invested amount of Rs. 20.73 lakh would have grown to approximately Rs. 26.96 lakh had it been deployed in a similar project.

Since refund had already been granted earlier, the Authority awarded Rs. 26.96 lakh as compensation for loss of appreciation. It further held that the delay in completing the project caused mental agony and harassment to the homebuyer, but found the claim of Rs. 5 lakh excessive. It instead awarded Rs. 1 lakh under this head.

On litigation costs, the Authority observed that although no court fee was payable, the homebuyer had incurred legal expenses, and accordingly awarded Rs. 50,000 towards litigation costs.

Accordingly, the Authority directed Experion Developers to pay Rs. 26.96 lakh towards loss of appreciation, Rs. 1 lakh towards mental agony, and Rs. 50,000 towards litigation expenses, along with interest at 11% per annum from the date of the order until realisation.

Counsel for Complainant: Mr. Nikhil Hooda

Counsel for Respondent: Mr. Pankaj Chandola