H-Rera Orders Gurgaon Developer to Clear Investor Dues Within 90 Days

• Developer told to release pending assured returns within 90 days

• Assured return commitments held valid under RERA

• Conveyance deeds to be executed without extra charges

The Haryana Real Estate Regulatory Authority (H-Rera) has directed Splendor Buildwell, the developer of the Spectrum One project in Sector 58, to clear long-pending assured return dues of investors within 90 days, along with applicable interest, and to formalise property ownership documents.

In an order reserved on November 27 and pronounced on December 18, H-Rera member Phool Singh Saini clubbed three complaints filed by investors Tripti Vohra and Amit Vohra. The complaints were related to delayed possession, stoppage of assured returns, and failure to execute buyer and sale agreements.

The Vohras had invested in three small commercial office units in Tower D of the nearly seven-acre, RERA-registered project, which received its occupation certificate on September 6, 2019. The investments were made in 2016 under an assured return scheme, where the developer promised fixed monthly payouts until the first lease of the units, followed by assured rentals.

As per the memorandum of understanding (MoU), Splendor Buildwell had committed to pay Rs 71.5 per sq ft per month as assured returns from August 1, 2016, until the first lease, and Rs 58.5 per sq ft per month thereafter as assured rent. While payments were made until May 2018, the developer later halted the payouts, citing the Banning of Unregulated Deposit Schemes (BUDS) Act, 2019, and other legal grounds.

Rejecting the developer’s argument, H-Rera ruled that assured return commitments forming part of the builder-buyer arrangement are enforceable under RERA and protected under Section 24(1)(iii) of the BUDS Act. The authority directed the developer to resume payments at the agreed rates from June 2018 until the units are actually leased.

The order further states that the entire outstanding assured return amount must be paid within 90 days, after adjusting any legitimate dues. Failure to comply will attract 8.8% annual interest until full realisation.

Noting that the occupation certificate has already been issued, H-Rera also instructed Splendor Buildwell to execute conveyance deeds for the revised units in favour of the investors within the same 90-day period. The authority clearly barred the developer from charging any internal or external development charges or additional amounts not mentioned in the original 2016 MoU.

The ruling reinforces H-Rera’s stance on protecting investor rights and sends a strong signal to developers on honoring assured return commitments made prior to project completion.