Homebuyers get windfall after 10-year wait: Haryana RERA orders Gurugram-based builder to pay interest of 10.80%
Synopsis
The order dated April 7 of HRERA was in favour of two allottees who had filed a complaint against M/s KNS Infracon Pvt Ltd (the group company) and its associate developer in the Capital Gateway project. Each of them had booked a flat measuring 2,675 sq ft for over Rs 1.8 crore.
You save money for years and book a flat that you want to build that long dreamed of ‘dream house’ but are struck with the realization yet again that having your own house is still such a distant realisation. Why? Due to the builder elongating their delay day after day.
This is the story of a few buyers who had booked their flats in Capital Gateway housing project in Gurugram Sector 111, one of those delayed projects. Some homebuyers of the project even demonstrated at the project site in December 2022, demanding that the Haryana Real Estate Regulatory Authority (HRERA) conduct a review of approvals, schedule hearings on fixed dates and strictly enforce provisions.
Two homebuyers, who have been waiting for more than 10 years to get possession of their unit after finalising the booking by paying Rs 1.8 crore, got some relief from the Haryana Real Estate Regulatory Authority (HRERA), with orders to the builder to pay them 10.8% interest per annum for delay in handing over possession.
In an order dated April 7,HRERA held in favour of two allottees who had filed a complaint against M/s KNS Infracon Pvt Ltd and its associate developer in the Capital Gateway project. The duo had booked a 2,675 sq ft flat each and shelling out over Rs 1.8 crore. But the builder increased the super area of booked flat owned by complainant, ‘unilaterally and without any authority’ resulting in payment of Rs14,40,809 more from him.
According to the buyers, in their complaint they mentioned that they “came to know about the fact that the respondents have no intention to deliver the project and were dragging its feet by indulging into delaying and dilatory tactics unfairly with a view to fleece(ing) the complainant knowing fully well not caring for completing the project in time span promised.”
Pursuant to the builder buyer agreement dated 11th February, 2015, it was agreed that the project would be completed within a period of 36 months from the date of sanction of the building plans of teh said residential project. According to the complaint, the delivery of possession was due on June 7, 2015.
HRERA said in its order that the respondents (builders) did not file a reply or even appear before it despite having been served notices. The authority, on the basis of the material before it, concluded that developer had committed breach of Section 11(4)(a) of Rera Act which mandates promoters to complete projects timely and handing over possession.
The Haryana Real Estate Regulatory Authority (HRERA) has ordered the Capital Gateway housing project to be completed.
Haryana RERA has also ordered the builder to pay interest per month on the amount paid by the complainants till possession date at regulated rate of 10.80 % p.a., with effect from due date of possession (June 7, 2015) till offer of possession plus 2 months or physical delivery of possession whichever is earlier.
According to the regulatory body, the current marginal cost of lending rate (MCLR) on SBI website as on June 7,2026, is 8.80 percent. Consequently, the chargeable interest rate shall be Marginal Cost of Lending Rate +2% i.e. 10.80 %
The order also directed the developer to clear the dues within 90 days, issue a revised statement of account and refrain from charging any fee not provided for in the buyer’s agreement. The HRERA has also directed the developer to pay Rs 50,000 to the complainants as litigation expenses.
