Haryana RERA Orders Imperia Structures To Pay ₹55 Lakh For Loss Of Property Appreciation

The Haryana Real Estate Regulatory Authority (Authority) on 16 March directed Imperia Structures Ltd. to pay Rs. 55 Lakhs to a homebuyer as compensation for loss of appreciation in property value due to delayed possession of the residential unit.

A Bench comprising Adjudicating Officer Rajender Kumar (AO) observed that the builder had received a substantial portion of the sale consideration but failed to deliver possession within the agreed time. Such a delay, it said, resulted in financial loss to the homebuyer and justified grant of compensation in addition to refund already ordered earlier.

It observed:

“……that based on available market trends, flats in Sector 37-C, Gurugram witnessed significant appreciation between 2017, being the due date of possession and 2023, largely driven by the development of the Dwarka Expressway. The Authority noted that estimates indicate an increase of around 79.5% over five years, reflecting a sharp rise in property values during this period.”

The homebuyer was allotted a residential apartment in the project “The Esfera” at Sector-37C, Gurugram. A Builder Buyer Agreement was executed on 5 November 2013, fixing the total sale consideration at Rs. 78.15 Lakhs. The builder promised to deliver possession within 42 months (i.e. by 5 May 2017).

The homebuyer paid Rs. 73.37 Lakhs which was about 95% of the total price by 22 June 2017. However, the builder failed to deliver possession within the promised time.

Due to the delay, the homebuyer filed a complaint before the Authority seeking refund with interest. By order dated 23 November 2022, the Authority directed the builder to refund Rs. 73.37 Lakhs along with interest at 10.35% per annum from date of each payment till realisation.

In addition to the refund the complainant sought other reliefs including compensation for loss of rent from May 2017 till realisation, compensation for loss of appreciation in property value, damages for mental agony and harassment, reimbursement of conveyance and incidental expenses and litigation costs.

The Authority referred to Section 72 of RERA, 2016 and noted that while determining compensation, factors such as loss caused to the homebuyer and unfair advantage gained by the builder must be considered. It observed that the builder received a major portion of the sale consideration but failed to deliver possession in time which resulted in financial loss to the homebuyer.

Therefore, the AO allowed a sum of Rs. 55 Lakhs as compensation towards loss of appreciation in value of the property. He held that the claim for compensation towards loss of rent and daily expenses cannot be allowed as similar relief had already been considered earlier and no separate basis was made out.

However, the Authority noted that the delay in handing over possession after receiving substantial payment caused mental harassment to the homebuyer and directed the builder to pay Rs. 1 Lakhs as compensation for mental agony and harassment.

Further, the Authority directed the builder to pay Rs. 50,000 towards litigation costs and ordered that all the above amounts shall carry interest at the rate of 10.85% per annum from the date of this order till realisation.

Accordingly, it disposed of the complaint.