SRS Real Estate: Haryana RERA Directs Execution of Conveyance Deed in Favour of Homebuyers. Full Payment Made, Possession Given — But Conveyance Deed Remained Pending for Years
The Haryana Real Estate Regulatory Authority (HRERA), Panchkula, has passed an important order concerning SRS Real Estate / SRS Royal Hills, Sector 87, Faridabad, directing the promoter to complete the long-pending conveyance of the apartment in favour of the allottees.
The order highlights an important aspect of RERA law: where the allottee has fulfilled the contractual obligations and possession has already been handed over, the promoter remains under an obligation to complete the formal transfer of title through the conveyance deed in SRS Real Estate RERA Complaint.
SRS Real Estate RERA Complaint-Background
The complainants had booked a residential flat in the project “SRS Royal Hills”, Sector 87, Faridabad.
The booking was initially made in February 2008, followed by execution of the Builder Buyer Agreement dated 7 October 2010. The allotted unit was Flat No. 1307, Tower B-5, having an area of approximately 1,133 sq. ft.
The basic sale price was approximately ₹18.12 lakh, while the complainants claimed to have paid approximately ₹27.35 lakh, including various charges.
Possession Was Already Offered and Handed Over
The contractual due date for possession was 30 June 2013, subject to the terms of the agreement.
The promoter subsequently issued a possession letter dated 3 March 2014, and the record indicated that possession was ultimately handed over on 22 August 2015.
Importantly, the Authority noted that the complainants had asserted that the entire consideration had been paid by 13 July 2015 and that the possession letter was issued thereafter.
The Remaining Problem: No Conveyance Deed
Despite possession having been handed over, the conveyance deed had not been executed in favour of the allottees.
The complainants stated that they had repeatedly approached the promoter for execution and registration of the conveyance deed. The process allegedly remained delayed on different grounds, including demands relating to additional charges and other project-related issues.
The matter eventually came before HRERA seeking directions for execution and registration of the conveyance deed.
What Did the Promoter Say?
The promoter did not file a detailed written reply.
During the proceedings, however, counsel appearing for the promoter stated that the promoter was ready and willing to execute the conveyance deed and that a letter in this regard had already been sent to the complainants.
This position became important in determining the relief that could appropriately be granted.
HRERA’s Finding: Title Transfer Cannot Remain Pending Indefinitely
The Authority examined the documents available on record and found that the complainants had paid the consideration and that possession had been handed over.
The Authority observed that once possession had been handed over, the logical next step was execution of the conveyance deed, which would complete the transfer of title in favour of the allottees.
The Authority further noted that the promoter had neither disputed the amount paid by the complainants nor produced material establishing that any balance amount remained payable.
Accordingly, the promoter could not demand amounts from the allottees beyond those legitimately payable, including the applicable stamp duty charges.
RERA’s Role in Ensuring Completion of the Transfer
The Authority exercised its powers under Section 37 of the RERA Act to issue directions for compliance with the promoter’s obligations.
The promoter was directed to:
- Authorise an official representative to execute the conveyance deed;
- Prepare the draft conveyance deed and send it to the allottees;
- Complete execution of the conveyance deed within 30 days of uploading the order; and
- Leave the complainants responsible for the applicable stamp duty charges.
What About Compensation for Delay?
The complainants had also sought compensation on account of delayed possession.
However, the Authority did not adjudicate the compensation claim in the present proceedings.
Referring to the Supreme Court’s ruling in Newtech Promoters and Developers Pvt. Ltd., the Authority observed that claims relating to compensation and litigation expenses fall within the jurisdiction of the Adjudicating Officer under Section 71 of RERA, with compensation to be determined having regard to the factors under Section 72.
The complainants were therefore advised to approach the Adjudicating Officer for the appropriate relief.
Key Legal Takeaways
1. Possession is not the end of the promoter’s obligations
Handing over physical possession does not necessarily complete the promoter’s obligations. Where the conveyance deed remains pending, the promoter may still be required to complete the formal transfer of title.
2. Payment of consideration strengthens the allottee’s claim
Where the allottee has substantially or fully discharged the agreed financial obligations and possession has been handed over, the promoter cannot indefinitely postpone execution of the conveyance deed.
3. Conveyance is an important stage in completing title transfer
The Authority treated execution of the conveyance deed as the necessary step following possession so that legal title could be completed in favour of the allottees.
4. Compensation and conveyance relief may involve different statutory mechanisms
The Authority distinguished between directing compliance with the promoter’s obligations and adjudicating a claim for compensation. Compensation claims may have to be pursued before the Adjudicating Officer under Section 71.
Also Read-SRS Real Estate RERA Panchkula Haryana Complaint 8.7.22
Conclusion
The SRS Real Estate order is significant for homebuyers who have already received possession and paid the consideration but are still waiting for execution of their conveyance deed.
The decision demonstrates that the promoter’s obligations do not necessarily end with physical possession. Completion of the title-transfer process is an important part of the contractual and statutory framework governing real estate transactions.
In the present case, HRERA ultimately directed the promoter to prepare and execute the conveyance deed within 30 days, while leaving the question of compensation to the appropriate statutory forum.
Legal Disclaimer: This article is intended solely for general educational and informational purposes and does not constitute legal advice or solicitation. The applicability of RERA provisions depends upon the facts, contractual documents, project status and applicable law in each individual matter.
By Satish Mishra, Advocate
