The Haryana Real Estate Regulatory Authority (HARERA), Gurugram, in its latest order has ruled against Neo Developers for breach of its contractual and statutory obligations with regard to payment of assured returns of INR 20981 per month.

The Authority directed the developer to pay monthly assured  returns from 20 July 2020 until offer of possession on 5 March 2025, within 90 days , failing which interest at 8.85% per annum applies . The Authority also directed the promoter to desist from levying any charges not explicitly provided in the buyer’s agreement or MoU.

The Authority held that the builder can not levy fit-out charges unless the allottee is first informed about the lessee’s request and the necessity of the work. Without prior intimation, the complainant can not be made liable for post- execution costs. Moreover, the builder must provide a detailed cost break-up, supporting invoices and preferably certification from a qualified expert . In the absence of such substantiation, the demand is unjustified and can not be enforced against the complainant . HARERA held that developers must follow transparent charge-levying processes or face regulatory action.