Relying On AI-Based Market Trends, Haryana RERA Awards ₹4.16 Crore Compensation To Chintels Paradiso Homebuyer

The Haryana Real Estate Regulatory Authority, Gurugram has declined to follow committee-fixed compensation rates and instead awarded Rs 4.16 crore to a homebuyer after determining compensation at Rs 13,000 per sq. ft., relying in part on an AI-based overview of rising property prices.

Adjudicating Officer Rajender Kumar held that the apartment formed part of a project found wholly unsafe for habitation due to structural defects, observing, “What to say of unit allotted to the complainant, entire project has been found unsafe for human dwelling. Allottee-complainant cannot be blamed for this defect, rather it was sole responsibility of the respondent to construct the project as per prescribed norms.”

The dispute concerns the Chintels Paradiso project in Sector 109, Gurugram, developed by Chintels India Private Limited.

Aruna Garg had purchased a 4 BHK unit measuring 3,150 sq. ft., paying Rs 1,80,04,265 towards sale consideration and Rs 4,60,000 as stamp duty. Possession was handed over on October 16, 2019 and the conveyance deed was executed on November 27, 2019.

Soon after possession, structural defects began to surface, including cracks, dislodged tiles and progressive deterioration. The issue escalated on February 10, 2022, when part of a flat in Tower D collapsed, resulting in the death of two residents.

Subsequent inquiries by committees constituted by the Deputy Commissioner and District Administration, along with structural audits conducted by IIT Delhi, found widespread corrosion in the concrete and concluded that the buildings were unsafe and not feasible for repair.

The Supreme Court, in proceedings relating to the project, had earlier outlined a framework offering affected allottees two options, exit at rates ranging from Rs 6,500 to Rs 7,900 per sq. ft., including Rs 7,500 per sq. ft. for certain towers, or reconstruction of the project.

However, the Authority noted that the complainant was not a party to those proceedings and that neither side was willing to proceed under that framework. It therefore declined to apply the committee-based compensation.

During the proceedings, the complainant argued that the offered rate of Rs 7,500 per sq. ft. was grossly inadequate and pointed out that comparable units in nearby projects were being sold at significantly higher rates, including around Rs 16,000 per sq. ft.

The Authority observed that it was guided by principles of natural justice and not strictly bound by rules of evidence. It then referred to an AI-based overview of market trends, noting:

“According to AI overview, the property prices in Sector-109, Gurugram experienced significant appreciation between February 2022 and March 2026 largely driven by developers of Dwarka Express Way. The average property rates for apartment rose from approximately Rs.6500-7000 per square feet in early 2022 to roughly Rs.12000-12400 per square feet by Quarter-1, 2026. The overall appreciation in property rates in Sector-109, Gurugram saw a dramatic increase of approximately 64.7% over the last three years.”

Taking this into account, the Authority held that compensation must reflect prevailing market realities and fixed the rate at Rs 13,000 per sq. ft.

By its order dated March 30, 2026, the Authority directed the developer to pay Rs 4,09,50,000 towards the value of the apartment calculated at Rs 13,000 per sq. ft., inclusive of the amount already paid, along with Rs 4,60,000 towards stamp duty.

The Authority rejected the claim for reimbursement of interior and woodwork expenses for lack of evidence but awarded Rs 2,00,000 for mental agony and Rs 50,000 towards litigation costs.

For Petitioner (Mrs. Aruna Garg): Advocate Ms. Priyanka Aggarwal.

For Respondent (M/s Chintels India Private Limited): Advocate Mr. Shubham Dayma.