Builder Must Pay 10.80% Interest for Delayed Flat Possession in Gurugram

• HRERA ordered interest payment at 10.80% on the buyers’ deposited amount.
• The flats in Pyramid Fusion Homes were handed over about six months late.
• The project received its Occupancy Certificate on August 14, 2024.

Gurugram: The Haryana Real Estate Regulatory Authority (HRERA) has directed Pyramid Builder to pay interest to homebuyers over the delayed handover of flats at Pyramid Fusion Homes in Sector 70A, Gurugram. The order was issued by HRERA Chairman Arun Kumar after buyers approached the authority over the delay.

The buyers had booked their flats in 2019 after being assured that possession would be provided by 2024. However, the promised timeline was not met, and possession was ultimately offered on August 21, 2024, around six months later than expected. The case matters for homebuyers because the authority has now required the builder to compensate them financially for the period of delay.

According to the case details, Ritu Rani and Mohit Kumar booked their flats on June 18, 2019, while Kavita Negi made her booking on July 12, 2019. The project’s Occupancy Certificate was issued on August 14, 2024. Possession was offered a week later, on August 21, and the flats were actually handed over on September 2, 2024. The conveyance deed was subsequently executed on December 4, 2024.

The authority has directed the builder to pay interest at an annual rate of 10.80% on the amount collected from the affected buyers. However, the interest will be calculated only for the period during which possession remained delayed, rather than for the entire period since the flats were booked.

The order provides relief to the buyers who had raised concerns about the delay in receiving their homes. For property buyers, such rulings also underline the importance of checking the possession commitment mentioned in the agreement and understanding their rights under the real estate regulatory framework.

Pyramid Builder will have to comply with the HRERA direction and calculate the applicable interest based on the amount collected from the affected homebuyers and the period of delay. The case also reinforces that developers can face financial liability when possession is not delivered within the committed timeline.

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