Haryana RERA Directs Agrante Realty to Pay 11.1% Annual Interest to Homebuyers for Delayed Possession in Gurgaon Kavyam Project

The Haryana Real Estate Regulatory Authority has issued comprehensive orders directing Agrante Realty to compensate homebuyers of the "Kavyam" affordable housing project located in Sector 108, Gurgaon, due to significant possession delays. The builder had collected nearly the complete sale amount from buyers but failed to deliver possession by the promised deadline of February 20, 2024, without obtaining the necessary occupation certificate.

Project Background and Delay Issues

Agrante Realty's Kavyam project operates under Haryana's Affordable Housing Policy, which typically grants developers a four-year possession timeline from the date of environmental clearance. Despite this extended timeframe and having collected substantial payments from homebuyers, the company has failed to complete construction and obtain the mandatory occupation certificate required for legal possession handover.

Builder's Defense Arguments Rejected by HRera

Agrante Realty attempted to justify the delays by citing COVID-19 disruptions, pollution-related construction bans in the National Capital Region, and escalating material costs as force majeure events that disrupted project timelines. However, HRera categorically rejected these claims, stating that such disruptions were too short-term in nature to justify the prolonged delays experienced by the project.

Comprehensive HRera Directives

Interest Payment Obligations

HRera has mandated that Agrante Realty must pay monthly interest at the rate of 11.1% per annum, calculated as the State Bank of India's Marginal Cost of Lending Rate plus 2%, on all amounts paid by homebuyers. This interest calculation will commence from the original due date and continue until actual possession is delivered to buyers.

Infrastructure Completion Requirements

The regulatory authority has directed the developer to complete all essential amenities and infrastructure components including water supply systems, electrical connections, internal roads, parks and recreational areas, and clubhouse facilities as originally promised to homebuyers in the project agreements.

Prohibition on Additional Charges

The builder has been strictly prohibited from imposing any additional charges or fees beyond those explicitly agreed upon in the original purchase contracts, preventing any attempt to recover losses through extra levies on homebuyers.

Legal Precedent and Broader Implications

HRera's ruling establishes that the order applies to all pending complaints related to the Kavyam project, creating a blanket resolution for affected homebuyers. The authority has also clarified that buyers seeking additional compensation beyond the mandated interest payments may file individual claims for further relief.

The decision reinforces regulatory commitment to protecting homebuyer interests and demonstrates that RERA authorities across India are taking increasingly strict positions against delayed project deliveries.

Regulatory Framework for Developer Accountability

This ruling underscores the principle that promoters cannot benefit from their own failures or use external factors as indefinite excuses for non-performance. HRera's decision sends a clear message to the real estate industry that contractual obligations must be honored regardless of market conditions or operational challenges.

Impact on Affordable Housing Sector

The case holds particular significance for Haryana's affordable housing segment, where buyers often have limited financial resources and depend heavily on timely project completion. By enforcing strict penalties and completion requirements, HRera is working to maintain investor confidence in government-backed affordable housing initiatives.

Enforcement and Compliance Monitoring

The comprehensive nature of HRera's order ensures that Agrante Realty must address multiple aspects of project completion simultaneously, preventing selective compliance that might leave some buyer concerns unaddressed. The regulatory framework provides clear metrics for measuring developer performance and compliance.

Industry Standards and Future Precedents

This decision establishes important precedents for handling future project delays across Haryana's real estate sector. The ruling emphasizes that developers must maintain adequate financial and operational buffers to handle unforeseen circumstances without compromising buyer commitments.

The case aligns with broader trends in real estate regulation, where RERA authorities are implementing stricter oversight and more severe penalties for non-compliant developers across different states.

Significance for Homebuyer Protection

HRera's decisive action in the Kavyam project case reinforces the regulatory authority's commitment to safeguarding homebuyer interests and ensuring that developers remain accountable for timely project delivery. The ruling provides a clear framework for addressing similar cases and establishing consistent standards for developer accountability in Haryana's real estate market.