Haryana RERA Holds Ansal Housing and Co-Promoter Jointly Liable For Delay In Handing Over Commercial Unit, Orders Payment Of Interest

Haryana Real Estate Regulatory Authority (Authority) bench comprising Ashok Sangwan (Member) has held Ansal Housing Limited and Samyak Projects Pvt. Ltd. jointly liable for the delay in handing over the commercial unit to the complainants.

Authority observed that Samyak Projects being the landowner and Ansal Housing, the developer, both fall within the definition of 'promoter' under the RERA Act. Accordingly, it directed them to jointly pay interest to the complainants for the delay in possession.

Background facts

Complainants purchased a unit in the commercial project named Ansals HUB 83 Boulevard, located in Sector 83, Gurugram.

A Builder - Buyer Agreement was executed between the Complainants and the Respondents (Builders) on 25th June 2018. As per Clause 5 of the Agreement, the Respondents were required to deliver possession of the booked unit by 31st December 2020. However, the Respondents failed to deliver possession and also did not obtain the occupancy certificate for the project.

As per the agreed payment plan, the total sale consideration for the unit was to be paid in a 40:60 ratios, 40% at the time of booking and the remaining 60% at the time of the offer of possession. Accordingly, the Complainants paid Rs.17.63 lakhs out of the total sale consideration of Rs. 44.04 lakhs.

Aggrieved by the delay, the Complainants approached the Authority seeking delay possession charges, possession of the unit along with the occupancy certificate and execution and registration of the sale deed in their favor.

Observation and Direction by Authority

Since the project involved two promoters, the Authority observed that Respondent No. 1 (the developer) and Respondent No. 2 (the landowner) had entered into an MoU for development and marketing of the project. However, due to failure on the part of Respondent No. 1 to fulfill its obligations, Respondent No. 2 terminated the MoU and took over the project based on directions issued by the Sole Arbitrator appointed by the Delhi High Court.

Authority noted that while Respondent No. 2 had taken control of the project and was obligated to complete it by June 2023 as per the Arbitrator's order, the project still remained incomplete. Moreover, the occupation certificate had not yet been obtained and the arbitration proceedings between both respondents were still ongoing.

In light of these facts, the Authority held that both Respondent No. 1 and Respondent No. 2 fall within the definition of "promoter" under Section 2(zk) of the RERA Act. Therefore, the liability under Section 18(1) for delay in possession as well as the obligation to hand over the unit shall be borne jointly and severally by both respondents.

Authority noted that after including the six-month grace period granted due to the COVID-19 pandemic, the due date for handing over possession of the commercial unit was 30th June 2021.

Authority held that as per the agreement the respondents were obligated to deliver possession by that date. However, till now they have neither obtained the occupation certificate nor handed over possession of the unit to the complainants.

Therefore, the Authority directed the respondents to pay delayed possession compensation jointly and severally at the interest rate of 11.10% per annum for every month of delay. This interest shall be calculated from the due date of possession (30.06.2021) until the date of a valid offer of possession plus two months after obtaining the occupation certificate, or actual handing over of possession whichever is earlier.

Authority also directed the respondents to hand over the actual possession of the unit to the complainants within two months of receiving the occupation certificate from the competent authority.

Lastly, the Authority directed the respondents to execute the Conveyance Deed in favour of the complainants within three months of obtaining the occupation certificate upon payment of the stamp duty charges by the complainants.

Case – Sunil & Ritesh Versus M/s. Ansal Housing Limited & Anr

Citation – Complaint No: 4215 of 2024

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