In a significant order reinforcing homebuyer rights, the Haryana Real Estate Regulatory Authority (Hrera) has directed Ramprastha Promoters and Developers to pay over ₹21 lakh as compensation to a buyer for delayed possession of a residential unit in Gurgaon’s Sector 37D.

The authority clarified that a refund of the invested amount does not preclude additional compensation, especially where financial loss, including missed property appreciation and mental distress, is established, according to a report by The Times of India.

The possession of the unit in Sector 37D – in the Edge Towers project, part of Ramprastha City – had been promised by Aug 2012. The developer has been directed to pay the awarded amount along with 10.8% annual interest from the date of the order until realisation.

While assessing compensation, adjudicating officer Rajender Kumar took into account property price appreciation trends in the area. It noted that rates in Sector 37D saw a significant rise over the years and estimated that the complainant suffered a loss of nearly Rs 18.9 lakh due to missed appreciation on his investment. Accordingly, Rera awarded Rs 18.9 lakh as compensation for loss of appreciation. Additionally, Rs 2 lakh was granted for mental harassment and Rs 50,000 towards litigation costs.

Mehra booked the apartment in 2008 and was later allotted a unit measuring nearly 1,990 sq ft. A builder-buyer agreement executed in April 2012 fixed Aug 31 the same year as the possession deadline. However, the project was not delivered within the stipulated timeline. The complainant said that he paid over Rs 44 lakh towards the total cost of around Rs 52.9 lakh but did not receive possession. He subsequently approached Rera earlier and secured a refund order in Feb 2023, along with interest at 10.7% per annum.

Despite the refund order, Mehra sought additional compensation, citing rental expenses, financial burden due to loan repayments and mental harassment caused by the delay. He also argued that he incurred accommodation costs while waiting for possession.

The developer contested the plea, arguing that the complaint was not maintainable and that the delays were due to unforeseen circumstances. It also submitted that the possession timeline was extended as per the agreement terms.

Rejecting these arguments, the authority held that failure to deliver possession within the agreed timeline made the promoter liable for compensation under the provisions of the Real Estate (Regulation and Development) Act, 2016.

The authority declined other claims, including higher compensation and reimbursement of certain expenses, citing a lack of sufficient evidence. The order reinforces that homebuyers can seek compensation beyond refunds in cases of delayed possession, especially where financial loss and hardship are established.