Missed out on soaring property prices due to builder delay? Haryana RERA’s Rs 26 lakh compensation order sets precedent

The Haryana Real Estate Regulatory Authority recently provided relief to a homebuyer who claimed he lost out on a 130% increase in property price appreciation in Sector 108, Gurgaon, because the builder delayed possession even after receiving 25% of the payment.

This judgment (dated May 6, 2026, in case no: RERA-GRG-2515-2024) was made in response to a complaint from a frustrated homebuyer from Shalimar Bagh. He had invested his money to purchase a unit in a new project being developed by a Dwarka-based builder in Sector 108, Gurugram. He applied for this project on November 20, 2012, and was assigned a unit in Tower-A1 on December 3, 2012, along with a provisional allotment letter .

The total price for this unit was set at Rs 82 lakh, and till July 30, 2016, he had paid Rs 20.73 lakh according to the builder's demands. However, no Builder Buyer Agreement (BBA) was signed between them.


This is where the conflict between the homebuyers and the builder started. According to the provisional allotment letter, the apartment was to be handed over to him within three years from the date of booking, which meant by December 3, 2015. But the builder neither completed the project nor handed over possession of the allotted apartment within the stipulated period.

On January 11, 2017, the homebuyer sent a legal notice to the builder to convey that he is no longer interested in this apartment due to the delay in getting possession and requested them to refund the money paid by him.

On March 2, 2017, the builder got the occupation certificate, much beyond the stipulated period of three years.

However, the homebuyer on July 6, 2021, sent another legal notice to the builder conveying that he was not interested due to delay in possession and sought refund. The builder refused to refund the amount paid by him.

Therefore, the homebuyer alleged that instead of responding to his genuine demand for the refund of his hard-earned money, the builder cancelled the allotment of the apartment and forfeited Rs 20.35 lakh. Moreover, the builder sent a letter on July 18, 2017, demanding an additional Rs 25.2 lakh as interest recoverable from the homebuyer. On the refund column, it showed 'nil'.

Feeling aggrieved, the homebuyer filed a complaint with Haryana RERA (no.2022 of 2022). On February 2, 2023, Haryana RERA ordered the builder to refund Rs 20.73 lakh to the homebuyer with 10.6% p.a. interest from the date of each payment till the actual date of refund of the amount, within a period of 90 days of the order. But the builder neither handed over the possession of the allotted apartment nor refunded his amount.

The homebuyer then filed another appeal in Haryana RERA and this time he asked for compensation also.

Haryana RERA heard the facts of the case and observed that the residential property prices in Sector 108, Gurugram (along with the Dwarka Expressway) experienced significant appreciation between July 2016 (last payment by complainant) and early 2023 (order of refund), largely driven by the operation the expressway and improved connectivity.

Haryana RERA held that residential property in Sector-108 has seen a massive appreciation over the long term, with some data suggesting flat prices grew by over 130% in the last 5 years (relative to early 2023).

Haryana RERA said: "It is presumed that if the amount paid by the complainant (hombuyer) ie. Rs 20,73,670/- up to 30.07.2016 (date of payment) was invested in some other similar project, it would have appreciated to Rs 26,95,771 (20,73,670 x 130/100)."

Thus Haryana RERA ordered the builder to pay Rs 26.95 lakh compensation for the loss of opportunity to the homebuyer, Rs 1 lakh for mental agony and harassment, Rs 50,000 for litigation expenses and 11.1% p.a. interest on these amounts from the date of this order till it is paid.

Also read: Homebuyer wins full refund with Rs 1.57 crore interest in MahaREAT as builder delays possession by 3 years, citing MHADA-MCGM dispute

Haryana RERA order and discussion

Haryana RERA said that the builder contended that it had sent the draft agreement on April 30, 2013 but the homebuyer did not sign it due to his mala fide intention. The builder also claimed that it sent multiple reminders to the homebuyer but he never came forward to execute the agreement.

However, the builder has failed to adduce any evidence to prove that any such draft was ever served upon the homebuyer.

Section 13 of Act of 2016 restrains a promoter from accepting more than 10% of the cost of the apartment, plot or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale.

Thus Haryana RERA said that it is an admitted fact that the builder made the homebuyer pay Rs 20.73 lakh out of total sale consideration of Rs 82.95 lakh.

In such a situation, Haryana RERA said the builder cannot claim that the homebuyer failed to make payment of the entire sale consideration and so the forfeiture is justified.

Haryana RERA said: "An allottee could not be compelled to pay more than 10% of sale consideration, before execution of agreement for sale."

Haryana RERA also said that despite the lapse of the due date of possession, i.e. October 19, 2016, the project was not complete. In such a situation, an allottee-complainant was within his right to withdraw from the project.

Haryana RERA said: "In this way, when the respondent failed to complete the project and to hand over the possession of the unit in time, the complainant despite receiving refund of the amount along with interest, is entitled for compensation."

With the direction to give compensation and refund both to the homebuyer, Haryana RERA disposed of the complaint.