Haryana RERA Directs Parsvnath Developers To Pay ₹77.63 Lakh Compensation For Delay in Possession

The Haryana Real Estate Regulatory Authority (the Authority) on 24 February directed Parsvnath Hessa Developers to pay Rs. 77.63 lakhs to a homebuyer as compensation for loss of appreciation in property value due to a delay in handing over possession.

A Bench comprising Adjudicating Officer Rajender Kumar, observed that property prices in Sectors 53 and 54 along Golf Course Road, Gurugram, witnessed significant appreciation between 2012 and 2022. Taking note of the market trend, the Authority held that the value of residential properties in the area had increased by around 50 percent during this period.

The Bench observed:

“Taking an overall approach, it is presumed that prices of residential houses were appreciated during the entire period from September 2012 to September 2022.”

The Homebuyer (Complainant) came across advertisements issued by the builder (Respondent) for its residential project “Parsvnath Exotica”, located on Golf Course Road in Sectors 53 and 54. After discussions with the builder, they decided to purchase a unit in the project.

Earlier, the Homebuyer had been allotted four shops by the builder. The parties subsequently entered into a Memorandum of Understanding (MOU) dated 1 September 2012. Under the MOU, the allotment of the shops was cancelled, and it was agreed that the amount paid for those shops would either be adjusted towards a residential unit in the project or refunded to the Homebuyer. It was also agreed that no demand would be raised by the builder until such adjustment or refund was made.

Subsequently, the Homebuyer executed a Flat Buyer's Agreement dated 3 September 2012 with the builder for an apartment in Tower B5 with a super area of about 3,390 sq. ft. The total sale consideration of the unit was fixed at Rs. 3.47 crores. As per the agreement, the builder was required to complete construction and hand over possession within 24 months from the date of booking.

The Homebuyer had booked the flat on 3 July 2012 by paying Rs. 10 lakhs and, in total, paid Rs. 1.55 crores towards the unit. According to the Homebuyer, the builder failed to complete construction within the stipulated time, and the project remained abandoned for several years. Despite repeated requests, the builder neither handed over possession nor refunded the amount paid.

Aggrieved by the delay and alleged failure of the builder to fulfil its contractual obligations the Homebuyer filed the present complaint seeking compensation for loss of profit, mental harassment, loss of opportunity and litigation costs.

The Authority noted that the Homebuyer had earlier approached it seeking a refund due to delay in possession. By order dated 14 September 2022, the Authority had already directed the builder to refund Rs. 1.55 crores to the Homebuyer with interest at 10% per annum from the date of each payment until realization.

The Authority further observed that the agreed date of possession was 13 January 2015. However, the occupation certificate for the project had not been obtained even at the time of filing the complaint. It held that Homebuyers could not be expected to wait indefinitely for possession after paying a substantial amount towards the sale consideration.

While examining the claim for compensation, the Authority considered the appreciation in property prices in Sectors 53 and 54 along Golf Course Road. Taking an overall view of market trends between 2012 and 2022, the Authority presumed that the value of similar residential properties had increased by about 50% during the period.

The Authority held that if the Homebuyer had invested the deposited amount in another similar project, the value of their property would have appreciated to Rs. 2.32 crores. Accordingly, it allowed Rs. 77.63 lakhs as compensation towards appreciation in property value (loss of profit).

Accordingly, the Authority awarded Rs. 1 lakh to the Homebuyer as compensation for mental agony caused due to the delay in possession and Rs. 50,000 towards litigation costs.