In a significant ruling that strengthens homebuyer protection in Haryana’s affordable housing segment, the Haryana Real Estate Regulatory Authority (HRera) has set aside the cancellation of a flat in Sector 89, Gurugram, and directed developer MRG Infrabuild to reinstate the unit. The authority has also ordered the promoter to pay delay compensation at 10.9% per annum, citing wrongful cancellation and failure to meet statutory deadlines.
The case involves homebuyer Amit Kumar Pandey, a resident of South Delhi, who had booked a flat in the developer’s affordable housing project The Meridian. As per records, Pandey had already paid Rs 25.8 lakh, which exceeded the total sale price of Rs 25.5 lakh. Despite this, the developer cancelled the allotment on July 14, 2023, alleging payment defaults.
Pandey informed the authority that during the Covid-19 period, the developer repeatedly raised payment demands with interest. He later discovered that the builder’s officials admitted these were system-generated demands and not actually payable. Continuing payments in good faith, he eventually cleared the full sale amount, yet the allotment was cancelled, and further interest was subsequently demanded.
In its order dated November 20, 2025, a two-member bench led by chairperson Arun Kumar observed several violations by the developer:
• The cancellation letter was invalid and issued in violation of the affordable housing policy.
• Under the policy, a defaulting allottee must be given at least 15 days after publication of the defaulter list in a newspaper.
• In this case, the promoter cancelled the allotment only 2 days after the list was published on July 12, 2023.
• When Pandey made a payment of Rs 1,65,107 on July 21, 2023, he had already paid more than the total sale price.
• Despite receiving over 100% of the sale consideration, the developer had neither obtained an occupation certificate (OC) nor issued a valid offer of possession.
Even after considering the promoter’s claim of additional dues at the time of possession, HRera held the developer responsible for the project delay.
Determination of Delay Compensation
HRera relied on Section 18(1) of the Real Estate (Regulation and Development) Act and Rule 15 of the Haryana RERA Rules to determine the interest rate at 10.9% per annum.
The authority calculated the due date for possession as February 28, 2024:
• Environmental clearance was granted on August 30, 2019
• Under the affordable housing policy, possession timeline is four years
• A six-month Covid extension was added
Since the promoter had missed this possession deadline, delay interest became applicable.
Directions Issued to MRG Infrabuild
HRera has issued the following orders to ensure compliance:
• Reinstate the cancelled flat within 30 days
• Pay all delay interest within 90 days
• Continue paying monthly interest until:
– a valid offer of possession is issued after obtaining the occupation certificate, or
– the actual possession is handed over
The buyer has been directed to clear any legitimate remaining principal dues after adjusting delay compensation. However, the builder has been barred from recovering any additional amounts beyond what is specified in the buyer agreement.
This ruling sets a crucial precedent for homebuyers in the affordable housing segment of Haryana, especially for those who face:
• Arbitrary cancellations
• Invalid demand notices
• Delays in project completion
• Lack of transparency in possession timelines
The order reinforces that developers must adhere strictly to statutory processes and cannot penalise buyers based on system errors or procedural violations.
