Gurgaon Developer Fined for 4‑Year Delay in Project Handover

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The Haryana Real Estate Regulatory Authority (HRERA) has directed Shine Buildcon Pvt. Ltd. to compensate a buyer for an extensive delay in handing over a commercial unit in its “70 Grandwalk” project, located in Sector 70, Gurgaon. The buyer had booked the unit in 2014 with the expectation of receiving possession within the timeframe promised in the agreement. However, the handover was only completed in late 2023, marking a delay of nearly four years beyond the originally stipulated delivery date.

According to the HRERA order, the developer must pay interest at the rate of 11.1% per annum to the allottee for the entire period of delay, calculated from the committed possession date until the actual handover. The authority also instructed Shine Buildcon to complete the conveyance deed without further delay to ensure the buyer receives full legal ownership rights. This step, HRERA noted, is essential to securing the allottee’s title and preventing any future disputes over ownership.

The ruling further prohibited the developer from imposing additional charges not specified in the original sale agreement. These included inflated parking fees and other unauthorized costs that HRERA deemed invalid. The regulatory body made it clear that developers must strictly adhere to the terms agreed upon with buyers and cannot introduce unapproved financial demands after the fact.

The case has highlighted the recurring problem of delayed project possession across Haryana, an issue that has placed significant financial and emotional strain on homebuyers and commercial unit purchasers alike. Under Section 18 of the Real Estate (Regulation and Development) Act, 2016, buyers are entitled to compensation in the form of interest for delays, and they also have the right to withdraw from the project and seek a refund if they choose. In this instance, the buyer decided to retain the property but sought financial relief for the prolonged delay.

In its observations, HRERA noted that Shine Buildcon failed to provide a satisfactory explanation for the extended delay in delivering the unit. The authority showed that the developer’s attempt to collect charges beyond those agreed upon was a violation of the contractual terms. Officials stressed that the timely delivery of real estate projects is critical to maintaining public trust and market stability. They reiterated that developers are bound by law to fulfill both their delivery timelines and their pricing commitments.

Industry experts believe this ruling sends a strong message to the developer community in Gurgaon and the wider National Capital Region (NCR). It reinforces that non-compliance with delivery schedules and attempts to levy unauthorized charges can lead to substantial financial penalties as well as damage to a company’s reputation.

Since its inception, HRERA has actively pursued cases of delayed possession, with multiple recent decisions reinforcing the principle that builders must honor their contractual promises to buyers. For the affected buyer in this case, the decision provides financial relief and legal security, while also demonstrating the regulator’s commitment to protecting consumer rights in the real estate sector.