Haryana RERA Orders Signature Infrabuild To Pay Interest For Delay In Affordable Housing Project

The Haryana Real Estate Regulatory Authority (HARERA) has recently directed Signature Infrabuild to pay interest to a homebuyer for delay in handing over possession of a flat in its Gurugram project, holding that the developer failed to meet the stipulated timeline and had not obtained the Occupation Certificate.

A bench comprising Member Phool Singh Saini observed that the delay in offering possession amounted to a failure on the part of the promoter to fulfill its obligations.

“The Authority is of the considered view that there is delay on the part of the respondent in offering possession of the subject unit and it is a failure on the part of the promoter to fulfil its obligations and responsibilities to hand over possession within the stipulated period,” the order said.

The homebuyer was allotted a flat in the project “Signature Global Aspire” at Sector 95, Gurugram, developed under the Affordable Housing Policy, 2013.

The Authority noted that possession was due by December 20, 2023, but had not been offered, and the Occupation Certificate had also not been obtained.

Rejecting the developer's plea for a Covid-related extension, the Authority held that no such benefit could be granted as the agreement was executed after the onset of Covid-19.

Accordingly, the Authority directed the builder to pay delay possession charges at the prescribed rate of interest from the due date of possession till two months after a valid offer of possession or actual handover, whichever is earlier.

It also directed the developer to hand over possession after obtaining the Occupation Certificate and clarified that no charges outside the Buyer's Agreement or policy can be imposed.

On maintenance, the Authority said the developer must maintain the project free of cost for five years from grant of the Occupation Certificate, while allowing recovery of consumption-based utility charges.