RERA Update: Allottees Not Entitled to Separate Compensation If They Choose to Stay in the Project
- rit arora
- Aug 7
- 2 min read
By Lex Horizon
Adjudicating Officer, Haryana Real Estate Regulatory Authority, Gurugram has reiterated in a recent judgment (Navneet Kumar and Anr. vs. BPTP Limited, Complaint No. 2400 of 2023) that allottees who choose to stay in a real estate project and accept delayed possession are not entitled to separate and additional compensation before apart from the statutory interest payable for the period of delay.
Brief facts of the case at hand:
Complainants were allottees of a project of the Respondents, namely, Mansions Park Prime, Sector 66, Gurugram, and had made the booking in the year 2010. The Complainants were aggrieved with the inordinate delay in the offer of possession and thus filed one complaint bearing no. 2195 of 2018 before the Haryana Real Estate Regulatory Authority, Gurugram. The same was disposed off in the favour of the Complainants on 03.09.2019, and execution of the said judgment/decision was also pending. The possession of the apartment in question was offered belatedly to the Complainants.
The Complainants before the Adjudicating Officer, Haryana RERA, Gurugram had prayed for compensation for rental costs, for the period of delay, compensation for depreciation, mental agony amongst other reliefs.
The Respondents object to the above complaint on the ground that no compensation can be claimed by an allottee, who intends to stay in the project and only delay compensation charges can be claimed under the Real Estate (Regulation and Development) Act, 2016.
The Hon'ble Authority held that as per Section 18 (1) of the Act of 2016, if promoter fails to complete or is unable to give possession of an apartment, plot or building, the allottee has the right to seek refund along with prescribed interest and compensation. But in the cases where the allottee chooses to continue with the project, he shall be allowed interest at prescribed rate for every month of delay to be paid by the promoter, till the handing over of the possession. It observed that the legislature did not intend to provide compensation separately in such cases, as in the case of refund. The Hon'ble Authority placed reliance upon the judgment of the Hon'ble Uttar Pradesh Real Estate Appellate Tribunal in the case of "Greater Noida Industrial Development Authority, vs. Ranjan Misra" Appeal no. 70 of 2023 decided on 20.04.2023.
The Authority finally observed that when the complaint for delayed possession charges has already been allowed by it, there is no requirement for separately allowing claim for compensation and thus dismissed the complaint.
Find the order here
