No Fixed Limitation For Compensation Claims, Must Be Filed Within Reasonable Time: RERA Gurugram

The Gurugram Haryana Real Estate Regulatory Authority (HRERA) on 11 September held that the Real Estate (Regulation and Development) Act, 2016 does not prescribe a specific time limit for an allottee to file a complaint seeking compensation, and whether a complaint was filed within a reasonable time must be determined in light of public policy.

Adjudicating Officer Rajender Kumar held this while awarding Rs. 11.24 lakh compensation to Shashi Rastogi and Colonel Rajendra Kumar Rastogi (Retd.) against SS Group Pvt. Ltd. for loss of property appreciation, mental agony and litigation expenses arising from the developer's failure to deliver a flat in its “The Leaf” project at Sector 84-85, Gurugram. He held:

“I find weight in aforesaid submissions of the complainant. No time period has been prescribed by Act of 2016 within which a complaint seeking compensation can be filed. Public policy requires that a case, (complaint or civil) suit should be filed within reasonable time.”

The homebuyers had booked Unit No. 12B, 12th Floor, Tower-1 (also referred to as Unit 7C in paragraph 11 of the order) in SS Group's “The Leaf” project and paid Rs. 39.38 lakh (specifically Rs. 39,38,001/-). Possession was due on 24 September 2016 but was not delivered. They subsequently sought cancellation and refund, including on account of medical exigencies, and approached Haryana RERA in 2019.

On 4 October 2022, the Authority directed SS Group to refund Rs. 39.38 lakh with 10% annual interest from the dates of the respective payments until actual refund. The Authority had noted that the complaint was filed after a delay of 2 years, 7 months, and 12 days.

The homebuyers initiated execution proceedings in 2024 and approached the Adjudicating Officer on 12 June 2025 under Section 31 read with Section 71 of the RERA Act, seeking separate compensation.

SS Group contended that the compensation complaint was time-barred, as it was filed nearly 10 years after the default and more than 8 years and 8 months after the possession deadline. It also argued that compensation could not be awarded after the Authority had already granted refund with interest.

Rejecting this contention, the Officer held that refund with interest did not bar the homebuyers from separately claiming compensation for the developer's default. The Officer observed:

“According to Section 18 (1) of The Act of 2016, when promoter fails to complete the project/unit in agreed time and the allottee intends to withdraw from the project, the promoter is liable to refund the interest along with interest as well as compensation. When Authority has allowed refund of amount along with interest, same does not bar an allottee from claiming further compensation.”

On the quantum of compensation, the Authority noted that the homebuyers had not produced conclusive evidence that the flat would have appreciated by 10% annually. However, it held that the claim could not be rejected solely for want of such evidence.

It considered property-price trends showing 22.2% growth in the relevant Gurugram market and assessed the appreciation from May 2015 to October 2022. Applying that rate to Rs. 39.38 lakh, the Officer awarded Rs. 8.74 lakh for loss of appreciation, Rs. 2 lakh for mental agony and harassment, and Rs. 50,000 towards litigation expenses, taking the total compensation to Rs. 11.24 lakh.

Accordingly, the RERA directed SS Group to pay the compensation with 11% annual interest from 11 September 2026 until realisation.

Appearances for petitioner (Homebuyers): Colonel Rajendra Kumar Rastogi, Complainant No. 2, in person.

Appearances for respondent (SS Group Pvt. Ltd.): Advocate Venket Rao.