10 years gone but no flat, Rera asks Gurgaon-based builder to pay 10.8% interest to buyers

Gurgaon: After waiting a decade for a flat they had booked with more than Rs 1.8 crore, two buyers have won relief from Haryana Real Estate Regulatory Authority, which has ordered a city-based builder to pay 10.8% annual interest for the delay in handing over possession at its Sector 111 project.The authority found that despite the committed timeline expiring in Jun 2015, possession had still not been offered, leaving the two buyers burdened with prolonged uncertainty and a bank loan.The April 7 order came on a complaint filed by the two allottees against M/s KNS Infracon Pvt Ltd and its associate developer in the Capital Gateway project. The buyers told the authority they had booked a 2,675 sqft flat each, paid over Rs 1.8 crore and later faced additional demands after the developer allegedly increased the super area by 315 sqft.As recorded in the order, the project was scheduled to be completed within 36 months from the sanction of building plans, which made June 2015 the committed date for possession. The flats, however, had not been handed over even by the time the matter was decided.H-Rera noted that the respondents neither filed a reply nor appeared before it despite notices to them. On the basis of the material on record, the authority held that the developer had violated Section 11(4)(a) of the Rera Act, which requires promoters to complete projects and hand over possession on time.The authority asked the builder to pay interest at 10.8% per annum on the amount deposited by the complainants from the committed possession date until the offer of possession or actual handover, whichever is earlier. It also ordered the developer to clear the arrears within 90 days, issue an updated statement of account and not levy any charge not provided for in the buyer’s agreement.H-Rera, however, declined the buyers’ plea for refund of the amount allegedly collected due to the increase in super area, saying there was not enough evidence on record. But it awarded Rs 50,000 towards litigation costs.