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The Haryana Real Estate Regulatory Authority (HRERA), Gurugram, has directed Imperia Structures Ltd to pay approximately INR 55 lakh as compensation to homebuyers for loss of property appreciation due to delayed possession in its The Esfera project in Sector 37C, Gurugram. The order also includes additional payments towards mental agony and litigation costs. The buyers had booked the unit in 2013, with possession due by 2017, but faced prolonged delays. HRERA noted that the developer's failure to adhere to timelines resulted in financial loss linked to rising property values in the micro-market. The ruling reinforces the authority's approach of awarding compensation beyond refunds in cases of prolonged project delays.
The Haryana Real Estate Regulatory Authority (HRERA), Gurugram, has directed Imperia Structures Ltd to compensate homebuyers with approximately INR 55 lakh for loss of property appreciation arising from delayed possession in its residential project The Esfera in Sector 37C, Gurugram. The order was issued in the past week in response to a complaint filed by buyers who had booked a unit in 2013 but did not receive possession within the agreed timeline. Advertisement
The complainants, Harjeet Kaur Dhillon and H S Dhillon, had entered into a builder-buyer agreement under which possession was to be delivered within 42 months, or by May 2017. Despite having paid approximately INR 73.37 lakh nearly 95% of the total consideration the project remained incomplete beyond the stipulated deadline, prompting them to approach the regulator seeking relief.
In its order, the adjudicating officer observed that the developer's failure to complete construction within the committed timeframe constituted a violation under the Real Estate (Regulation and Development) Act, 2016. The authority also noted that the Gurugram micro-market, particularly areas along the Dwarka Expressway, had witnessed significant price appreciation during the period of delay, resulting in financial loss to the buyers.
Taking these factors into account, HRERA awarded compensation of around INR 55 lakh towards loss of appreciation. In addition, the authority directed the developer to pay INR 1 lakh for mental agony and harassment, along with INR 50,000 towards litigation costs. The compensation is to be paid with applicable interest until full realisation.
The authority also clarified that homebuyers are entitled to seek both refund and compensation where possession delays are substantial. It rejected certain additional claims made by the complainants, including rental compensation, stating that the awarded amount for loss of appreciation sufficiently addressed the financial impact of the delay.
The case traces back to earlier proceedings, where the authority had directed a refund of the invested amount. However, the buyers subsequently sought compensation for the opportunity loss resulting from rising property values in the intervening period, leading to the present order.
The ruling highlights the increasing use of valuation-based compensation by regulatory authorities in delayed housing projects, particularly in markets where property prices have recorded significant growth. It also underscores the regulator's position that developers may be held accountable not only for refund obligations but also for broader financial losses incurred by homebuyers due to delayed project delivery.
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