Haryana RERA Orders Emaar MGF to Refund Homebuyers After 4-Year Delay in Possession
Authority rules in favour of buyers of Palm Gardens project in Gurugram, citing violation of RERA norms
Builder allowed 10% deduction from sale price due to late filing of complaint by homebuyers
By Our Legal Reporter
New Delhi: November 27, 2025:
The Haryana Real Estate Regulatory Authority (HRERA) has directed real estate developer Emaar MGF Land Limited to refund money to homebuyers after a delay of nearly four years in handing over possession of flats in its Palm Gardens project located at Sector 83, Gurugram. The order, delivered by HRERA member Phool Singh Saini, is being seen as a significant step in protecting consumer rights in the real estate sector.
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Background of the Case
The complainants had booked a flat in the Palm Gardens project, priced at ₹1.22 crore, with a basic sale consideration of ₹94.60 lakh. According to the agreement, possession was to be delivered within a stipulated period. However, the builder delayed possession by 3 years and 10 months, forcing the buyers to approach HRERA for relief.
The buyers filed their complaint almost five years after the builder issued the offer of possession, which became a key factor in the Authority’s decision.
HRERA’s Order
In its ruling, HRERA directed Emaar MGF to:
- Refund the amount paid by the homebuyers for the flat.
- Allow the builder to deduct 10% of the basic sale consideration (₹94.60 lakh) as compensation, since the complaint was filed late.
- Ensure compliance within the stipulated period, failing which interest and penalties may apply.
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The Authority emphasised that delayed possession violates Section 11(4)(a) of the Real Estate (Regulation and Development) Act, 2016, which requires promoters to adhere to timelines and deliver projects as promised.
Builder’s Defence
Emaar MGF argued that possession had already been offered and that the buyers delayed in filing their complaint. The company sought relief by citing the late filing. HRERA acknowledged this point but maintained that the delay in possession was undeniable and that consumer rights must be protected.
Significance of the Ruling
This ruling is important for several reasons:
- It reinforces accountability of builders under RERA.
- It balances consumer rights with builder’s obligations by allowing a 10% deduction due to late filing.
- It sets a precedent for similar cases where buyers approach RERA after long delays.
Legal experts note that the order reflects HRERA’s attempt to strike a balance between protecting homebuyers and ensuring fairness to developers.
Impact on Homebuyers
For the complainants, the ruling provides much-needed relief after years of waiting. Many buyers in Gurugram and across India face similar challenges, with projects delayed for years, leaving them financially and emotionally strained.
This case highlights the importance of timely filing of complaints. While HRERA ruled in favour of the buyers, the deduction shows that delays in seeking redressal can reduce compensation.
Broader Real Estate Context
The real estate sector in Gurugram has witnessed multiple disputes between buyers and developers over delayed possession. HRERA has been actively intervening to ensure compliance with RERA norms.
Recent similar rulings include:
- Ocean Seven Buildtech case: Refund ordered with ₹25,000 deduction under Affordable Housing Policy.
- Other Gurugram projects: Refunds ordered with interest for buyers facing cancellation or delay.
These rulings collectively signal HRERA’s determination to enforce discipline in the real estate market.
Expert Opinions
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Legal experts and consumer rights advocates have welcomed the order. They argue that:
- Builders must be held accountable for delays.
- Buyers should not be forced to accept possession years after promised timelines.
- RERA’s intervention is crucial for restoring trust in the housing market.
However, some industry voices caution that frequent refund orders could strain developers financially, especially in a market already facing liquidity challenges.
Government’s Role
The Haryana government has supported HRERA’s proactive stance, noting that consumer protection is central to RERA’s mandate. Officials have indicated that stricter monitoring of projects will continue, and developers failing to meet deadlines will face penalties.
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Looking Ahead
The Emaar MGF case is likely to encourage more buyers to approach HRERA for justice. It also serves as a reminder to developers that delays will not go unpunished.
For buyers, the key takeaway is the importance of filing complaints promptly. Delays in seeking redressal may weaken their case or reduce compensation.
As India’s real estate sector evolves, HRERA’s rulings will play a crucial role in shaping accountability and transparency.
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