The Haryana Real Estate Regulatory Authority (HRERA) has directed Ireo Private Ltd to pay 10.8% annual delay interest to UK-based allottee Balraj Singh for failing to deliver timely possession of a plot in its flagship project, Ireo City, located in Sector 60, Gurugram.
Eight-Year Delay in Possession
According to HRERA, Singh booked a 314 sq. yard plot in 2011, but the possession was only offered in December 2021 and handed over in 2022—an eight-year delay from the agreed timeline. The project had received consent in 2014, setting the due date for possession as February 14, 2017, which Ireo failed to meet despite repeated assurances.
The HRERA bench headed by member Ashok Sangwan observed that the developer had not only delayed possession but also reduced the plot area from 314 sq. yds. to 265.45 sq. yds. while continuing to charge Singh for the original size. This was deemed an unfair practice and a violation of the allottee’s contractual rights.
Developer’s Arguments Rejected
Ireo contended that since the agreement was signed before the implementation of RERA, the case should not fall under the purview of the Act. However, the authority rejected this argument, reiterating that RERA protections apply to all ongoing projects, including those that were initiated before the Act came into force.
The Authority clarified that approval-related delays or procedural issues cannot be cited as valid reasons for extending delivery timelines or evading responsibility under the RERA framework.
HRERA Upholds Homebuyer Rights
After reviewing the case, HRERA ruled in favor of Balraj Singh, concluding that Ireo had failed to deliver possession within the stipulated period despite full payment by the allottee. The Authority ordered the developer to pay delay interest at 10.8% per annum, calculated from the due date of possession (February 14, 2017) until the date of offer of possession, plus two months or until actual handover—whichever is earlier.
The developer has been given 90 days to comply with the order, failing which legal enforcement proceedings will follow.
Reinforcing Accountability in Haryana’s Real Estate Sector
The ruling once again underscores HRERA’s commitment to protecting homebuyers and ensuring accountability in Haryana’s real estate sector. Authorities noted that this order reaffirms that builders cannot evade liability under the guise of pre-RERA agreements or administrative delays.
By holding developers accountable for project delays, HRERA continues to build trust and transparency in the market, ensuring that buyers’ interests remain safeguarded.
