In a landmark ruling aimed at protecting homebuyers’ rights, the Haryana Real Estate Regulatory Authority (RERA), Panchkula, has directed Global Land Masters Infratech Private Limited (formerly known as M/s Bhoomi Infrastructure Company) to pay a compensation of ₹63.68 lakh to a retired army officer for failing to deliver a flat in its “Amazon – The Defence County” project within the stipulated period. The order reinforces RERA’s mandate to ensure accountability and justice for delayed real estate projects.
Background of the Case
The complainant, Lieutenant General Ram Kanwar Hooda (Retd), a resident of Delhi, had booked a flat in May 2011 in the said project and paid ₹40 lakh the following month. In 2015, he made an additional payment of ₹60,750, taking his total payment to approximately ₹40.6 lakh towards the flat priced at ₹68.85 lakh.
The developer had committed to hand over possession within three years of booking, but even after 12 years, possession was not delivered. By 2015, only four towers had seen structural completion, leaving the project in limbo.
Violation of RERA Provisions
The authority noted that the builder had violated Section 13 of the RERA Act, 2016, by collecting more than 10% of the total unit cost from the buyer without executing a registered builder-buyer agreement. Moreover, the firm had changed its name and structure in 2014 without notifying the complainant, a move that further complicated the situation and highlighted the builder’s lack of transparency.
Refund and Initial Relief
In November 2018, after enduring years of uncertainty, Lt. Gen. Hooda applied for cancellation and refund. In February 2024, the Panchkula RERA bench ordered the builder to refund the principal amount with interest, amounting to ₹55.72 lakh. However, Hooda later filed another complaint seeking additional compensation for the mental agony, harassment, and financial loss caused by the prolonged delay, especially considering the significant increase in property prices over the 13-year period.
RERA’s Final Order and Justification
In its order dated November 11, 2024, RERA directed the builder to pay an additional ₹63.68 lakh as compensation. The authority acknowledged the respondent’s contention that the compensation exceeded the original investment but maintained that the compensation was fair and justified given the time elapsed and the rise in real estate prices since 2011.
RERA stated that the intent of the Act is to ensure equitable relief for buyers who suffer pecuniary loss and mental distress due to a developer’s failure to meet contractual commitments.
Failure to Comply Will Attract Interest
The authority’s order further stated that failure to comply within 90 days would render the builder liable to pay interest on the delayed amount in accordance with the provisions of the RERA Act, 2016, and Rule 15 of the Haryana Real Estate (Regulation and Development) Rules, 2017.
Significance of the Order
This ruling underscores RERA’s proactive stance in protecting homebuyers from unscrupulous developers who fail to deliver projects on time. The case also emphasizes that collecting funds without a registered agreement, or failing to communicate corporate changes, constitutes a clear violation of the RERA Act. It serves as a strong message to developers across India that homebuyers’ rights cannot be compromised.
Conclusion
The Haryana RERA’s directive against Global Land Masters Infratech Private Limited highlights the regulatory body’s commitment to upholding the principles of fairness, accountability, and transparency in real estate dealings. The ₹63.68 lakh compensation awarded to Lt. Gen. Hooda not only offers justice for a long-pending grievance but also reinforces the faith of homebuyers in RERA’s enforcement mechanisms.
