Last Updated on June 15, 2024 by Satish Mishra
The Real Estate Development and Regulation Act, 2016 has been enforced with the objective of providing a betterment in the real estate sector that involves buying and selling of plots, apartments ,etc.
According to the provisions of this act, every state shall appoint a Real Estate Regulation Authority to deal with the disputes regarding the sector that generally arises between the allottees and the promoters and all the ongoing and future real estate projects need to be registered under this act.
The HRERA, i.e. the Haryana Real Estate Regulation Authority has been appointed by the Haryana State Government as per the provisions of the RERA Act, 2016.
Also Read- HOW TO CHECK WHETHER PROJECT IS REGISTERED WITH RERA PUNJAB
DELAY COMPENSATION:
Delay compensation is provided by the defaulting party who makes delay to the non-defaulting party. The RERA Act, 2016 enumerates that the delay compensation is entitled to both the promoters and the allottees.
Section 18 of the act states that the promoter is liable to refund the amount paid by the allottee in case of non compliance by the promoter and if the promoter makes delay in handing the possession of the apartment within the date mentioned in the agreement, the promoter is liable to pay a prescribed rate per Sq.ft. per month until the possession is handed over to the allottee.
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Section 19(7) of the act states that the allottee has to pay the registration charges, municipal taxes, water and electricity charges, etc. , duly on time and delay on the same makes the allottees liable to pay interest to the promoter.
PRAKASH CHAND AROHI V. PIVOTAL INFRASTUCTURE Pvt. Ltd.
This case was brought for final hearing before HRERA on 04/09/2018. The main issue dealt here is regarding the discrimination between the buyer and the seller in paying the delay compensation. The question before the forum was that the promoter in case of delay, has to pay Rs. 5 per Sq.Ft. per month for the entire period of delay as compensation to the allottee. The buyer, on the other hand, in case of delay in paying instalments, the buyer has to pay a higher interest of 10% or above, which exploits the buyer community.
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The learned Chairman of HRERA, delivered his order by stating that it is not discriminatory to pay a higher rate of interest in case of delay by the allottees while the promoters still pay a fixed rate of Rs. 5 per Sq.Ft. per month.
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The reason stated by the learned chairman is that the promoters are under a higher risk than that of the buyers, in case of an under developed project. Thus, it is obvious to demand a higher rate of interest in case of delay by the buyers. This does not amount to unfair trade practice unless the interest rate is exorbitant.
It was also stated that the delay compensation should be fixed in such a way that it does not prejudices the mental agony undergone by the non defaulting party.
Also Read- HARYANA RERA JUDGMENTS AND ORDERS
The learned chairman also stated that the delay compensation should be paid with interest rate as per the Rule 15 of the HRERA Rules, 2017 i.e. the normal SBI MCLR Rate + 2%, in case of default by the allottee; while in case of default by the promoter, the delay compensation to be paid Rs. 5 per Sq.Ft. per month for the period of delay.
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