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Haryana Real Estate Regulatory Authority (HRERA) has directed Pyramid Infratech to pay annual interest of 10.8% to four homebuyers over delayed possession of flats in its Pyramid Fusion Homes project in Gurugram's Sector 70A. The authority determined that possession was due in August 2023 and rejected the developer's reliance on Covid-related restrictions, pollution-control measures and labour shortages as grounds for further delay. The project received its occupation certificate in August 2024, with possession subsequently offered and handed over. HRERA has given the developer 90 days to pay the accrued interest.
Haryana Real Estate Regulatory Authority (HRERA) has directed Pyramid Infratech to compensate four homebuyers for delayed possession of apartments in its Pyramid Fusion Homes project in Gurugram by paying interest at an annual rate of 10.8%.
The affordable housing project is located in Palra village, Sector 70A, and was registered with HRERA in February 2019. The authority determined that the applicable possession deadline was August 30, 2023, based on the project's approval timeline under the Haryana Affordable Housing Policy, 2013.
The developer subsequently obtained the project's occupation certificate on August 14, 2024. Possession was offered to the allottees on August 21 and the apartments were handed over on September 3, 2024. The delay between the prescribed completion date and actual handover formed the basis for the homebuyers' claims before the authority.
Pyramid Infratech had cited several factors for the construction delay, including restrictions linked to pollution control, Covid-19 disruptions, labour shortages and other regulatory constraints. HRERA, however, did not accept these circumstances as justification for extending the developer's liability beyond the relief already recognised for the pandemic period.
The authority noted that recurring restrictions affecting construction should have been incorporated into project planning and execution. It consequently held that the developer remained responsible for the delay after accounting for the specific relief available under the regulatory framework.
HRERA has ordered the developer to calculate delayed-possession interest on the amounts paid by the four complainants. The interest is applicable from the relevant possession due date until two months after a valid possession offer or the actual date of handover, whichever occurred earlier.
The 10.8% rate was derived from the State Bank of India's marginal cost of lending rate of 8.8% prevailing on the relevant date, with an additional two percentage points. The authority has given Pyramid Infratech 90 days from the order to make the payment to the affected buyers.
The ruling also addresses the legal effect of conveyance deeds on delayed-possession claims. The developer argued that the execution of conveyance deeds should prevent buyers from pursuing compensation for the earlier delay. HRERA rejected that position, holding that transfer of title through a conveyance deed does not by itself eliminate a promoter's statutory responsibility for delays arising before possession.
At the same time, the authority did not grant the buyers relief on their other claims seeking refunds of certain charges. HRERA noted that conveyance deeds had already been executed and the relevant accounts had been settled.
The order has implications beyond the four individual complaints because it reinforces the financial consequences developers can face when possession extends beyond the applicable regulatory deadline. It also underlines that possession-related liabilities are not automatically extinguished when buyers eventually receive their homes or execute conveyance documents.
For homebuyers, the decision provides another example of the remedies available through the RERA framework when delivery timelines are breached. For developers, it highlights the importance of factoring foreseeable regulatory and operational disruptions into project schedules and maintaining realistic completion timelines.
The Pyramid Fusion Homes case therefore adds to the growing body of HRERA decisions linking delayed possession with financial liability, while distinguishing legitimate regulatory relief from delays that remain attributable to the promoter.
Source- Haryana RERA
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