Haryana RERA Orders Builder to Pay 11% Interest for Delay in Flat Handover in Gurugram
Authority rejects builder’s Covid-19 and pollution ban claims, rules in favour of Lucknow homebuyers.
Order strengthens consumer rights under RERA Act, ensuring timely compensation for delayed projects.
By Our Legal Reporter
New Delhi: December 07, 2025:
In a landmark ruling, the Haryana Real Estate Regulatory Authority (HRERA) has directed Godrej Real View Developers to pay 10.8% annual interest to a Lucknow-based couple for the delayed possession of their flat in Godrej Meridien-I, Sector 106, Gurugram. The order, passed by HRERA member Ashok Sangwan, underscores the authority’s commitment to protecting homebuyers’ rights under the Real Estate (Regulation and Development) Act, 2016 (RERA).
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This decision is expected to set a precedent for similar cases across Haryana and India, where thousands of buyers face delays in housing projects.
Background of the Case
- The complainants, Malik Ram and Sarita Verma of Gomti Nagar, Lucknow, booked a second-floor flat in Tower 2 of Phase I of Godrej Meridien-I for ₹1.75 crore.
- They paid nearly the entire consideration amount but did not receive possession within the promised timeline.
- The couple approached HRERA under Section 31 of the RERA Act, 2016, seeking compensation for the delay.
- The builder argued that delays were caused by Covid-19 restrictions and pollution-related construction bans, claiming these were force majeure events.
HRERA rejected these arguments, noting that the builder had already been granted six months’ relief for pandemic-related delays.
Court’s Observations
HRERA made several important observations:
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- Violation of RERA provisions: The builder violated Section 11(4)(a) and Section 18(1) of the RERA Act, which mandate timely possession and compensation for delays.
- Force majeure rejected: Covid-19 and pollution bans cannot justify delays beyond the relief already granted.
- Buyers entitled to compensation: The couple is entitled to monthly interest at 10.8% per annum from March 30, 2023, until possession is handed over.
- Consumer protection priority: The ruling reinforces HRERA’s role in safeguarding homebuyers against unfair practices.
Why This Judgment Matters
This ruling is significant for several reasons:
- Strengthens consumer rights: Ensures buyers are compensated for delays.
- Clarifies force majeure limits: Builders cannot misuse pandemic or pollution bans to justify indefinite delays.
- Sets precedent: Encourages other buyers to seek relief under RERA.
- Boosts accountability: Developers must adhere to timelines or face financial penalties.
Impact on Homebuyers
For homebuyers, the ruling provides:
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- Financial relief: Compensation at 10.8% interest reduces the burden of paying rent while waiting for possession.
- Legal clarity: Buyers can approach HRERA under Section 31 for similar grievances.
- Confidence in RERA: Reinforces trust in regulatory mechanisms.
Thousands of buyers across Gurugram and Haryana are expected to benefit from similar rulings.
Impact on Developers
For developers, the ruling is a reminder of their obligations:
- Timely delivery essential: Delays can lead to heavy financial penalties.
- Transparency required: Builders must provide clear timelines and adhere to commitments.
- Legal accountability: Courts and regulators will not accept vague force majeure claims.
Industry experts believe this ruling will push developers to improve project management and compliance.
Expert Opinions
Legal and real estate experts welcomed the ruling:
- Lawyers: Say the judgment strengthens enforcement of RERA provisions.
- Homebuyer associations: Applauded HRERA for prioritizing consumer rights.
- Analysts: Believe the ruling will improve transparency in the real estate sector.
According to real estate analyst Shruti Awasthi, “This ruling is a landmark in protecting buyers. It shows that RERA is serious about enforcing timelines and penalizing delays.”
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Challenges Ahead
Despite the ruling, challenges remain:
- Implementation: Ensuring timely payment of compensation by developers.
- Awareness: Many buyers are unaware of their rights under RERA.
- Litigation delays: Builders often appeal rulings, prolonging relief.
Experts suggest that stronger enforcement mechanisms are needed to ensure compliance.
Global Best Practices
Globally, similar consumer protection measures exist:
- United States: Buyers can claim damages for delayed possession under contract law.
- United Kingdom: Developers face penalties for failing to meet delivery timelines.
- Australia: Compensation mechanisms protect buyers against project delays.
India’s RERA framework aligns with these practices, strengthening consumer protection in real estate.
Conclusion
The Haryana RERA’s ruling against Godrej Real View Developers is a milestone in consumer protection. By ordering 10.8% annual interest compensation for delayed possession, the authority has reinforced the principle that homebuyers’ rights must be prioritized over developers’ excuses.
For buyers, the ruling offers financial relief and legal clarity. For developers, it is a reminder to adhere to timelines and commitments. As India’s real estate sector continues to evolve, this judgment sets a strong precedent for fairness, accountability, and transparency.
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