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The Haryana Real Estate Regulatory Authority (H-RERA) has directed Parsvnath Hessa Developers to pay compensation of more than INR 77 lakh to a couple for a significant delay in possession of their apartment in the Parsvnath Exotica residential development on Golf Course Road, Gurugram. The complainants booked a 3,390 sq ft flat in 2012 for about INR 3.4 crore, paying approximately INR 1.5 crore up front, with possession originally due by January 2015. Construction halted for four years and, even when possession was eventually offered in March 2018, the unit lacked a required occupation certificate. H-RERA's adjudicating officer held that indefinite delays were impermissible under Section 18(1) of the Real Estate (Regulation and Development) Act, 2016, and awarded compensation for loss of profit, litigation costs and interest, while rejecting additional claims for mental anguish and lost opportunities as excessive.
The Haryana Real Estate Regulatory Authority (H-RERA) has ruled that Parsvnath Hessa Developers must pay more than INR 77 lakh in compensation to homebuyers for substantial delays in handing over an apartment in the Parsvnath Exotica project on Golf Course Road, reflecting enforcement of statutory protections under the Real Estate (Regulation and Development) Act, 2016 (RERA). Advertisement
H-RERA's adjudicating officer found that the developer had failed to deliver possession within the contractual timeframe agreed with the complainants a couple who booked a 3,390 sq ft luxury flat in 2012 for a sale consideration of about INR 3.4 crore. The allottees paid approximately INR 1.5 crore upfront, with possession initially promised by 3 January 2015. However, construction was abandoned for nearly four years, and although the unit was eventually offered to the buyers in March 2018, it did not have the necessary occupation certificate (OC), meaning it was not legally ready for occupation.
In awarding compensation, H-RERA's officer cited Section 18(1) of the RERA Act, which entitles allottees to redress where possession is delayed beyond the agreed date. The authority granted the couple INR 77.6 lakh towards loss of profit calculated at 50 per cent appreciation on the amount they had invested plus INR 50,000 for litigation costs. In addition, the order includes interest at 10.85 per cent per annum on the compensation amount from the date of the order until payment is made.
The regulator rejected additional claims for lost opportunities, higher interest on delayed amounts and compensation for mental anguish as excessive and unsupported. Parsvnath Hessa had contended that prior interest payouts to the buyers covered all losses, but the adjudicating officer dismissed this argument, holding that it did not absolve the developer of its obligation under RERA.
The Exotica development, located on one of Gurugram's prime residential corridors, has seen prolonged delays affecting buyers across the project. Parsvnath Hessa Developers, an affiliate of a long-established real estate group, has faced several regulatory actions in recent years related to handover timelines and compliance with statutory requirements.
H-RERA's order underscores the regulator's increasing assertiveness in enforcing delivery timelines and compensatory obligations against promoters who do not meet contractual commitments. It also reflects judicial reinforcement of homebuyer rights when possession is not delivered within the agreed period, even where some construction work may have been undertaken.
Industry analysts say that compensation directives like this, especially with statutory interest attached, could influence builder behaviour in Gurugram's high-end residential market, where delays have been a persistent concern for buyers, particularly in luxury segments with long gestation periods.
The order will be closely watched by other allottees in delayed projects, who may seek similar redress under RERA's provisions, including compensation for delay, interest and related costs, and could shape expectations on compliance and enforcement in India's regulatory landscape.
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