Haryana RERA Directs Builder to Refund Rs 6 Lakh to Buyer for Unfulfilled Commitments
The Haryana Real Estate Regulatory Authority (H-RERA) has instructed a developer to refund Rs 6 lakh to a homebuyer, Bharat Gupta, and his wife Poonam, for failing to meet their contractual obligations. The decision comes after the buyers’ prolonged struggle to get their money back, highlighting critical consumer protection issues in the real estate sector. In April 2019, Bharat and Poonam Gupta booked a 2BHK flat in the Mahira Homes project located in Sector 103, Gurugram, paying an initial upfront fee of Rs 1.15 lakh. The project, like many others, had attracted buyers with promises of affordable housing. After receiving an allotment letter confirming a flat in Tower G of Mahira Homes, the couple paid an additional Rs 4.7 lakh, bringing their total payment to Rs 5.88 lakh.
However, the developer did not issue a receipt for the extra payment, raising concerns for the buyers about transparency. Despite this, the developer continued to demand further payments, even though they had not yet executed a formal builder-buyer agreement. The couple sought to apply for a home loan but was unable to do so, as the developer cited the lack of an environmental clearance certificate for the project. In January 2020, the Guptas claimed that Mahira Homes unilaterally cancelled their flat booking, and they were left with no recourse. After multiple attempts to get a refund from the developer failed, the couple approached H-RERA in January 2024, seeking justice. H-RERA investigated the case and found that the builder had violated several provisions under the Real Estate (Regulation and Development) Act, 2016. The act prohibits builders from collecting more than 10% of the total sale price of a property before executing a formal sale agreement. In this case, Mahira Homes had collected a substantial amount without providing the necessary documentation or fulfilling its obligations.
After several hearings in 2024, including on January 17 and February 21, the authority struck off the developer’s defence and ruled in favour of the homebuyers. The builder, Mahira Homes, was ordered to refund the full amount of Rs 5.88 lakh along with annual interest of 11% for the delayed payment. The authority also noted that the Mahira Homes project had come under regulatory scrutiny. The developer had been blacklisted in May 2022 for multiple violations, and the project’s registration was revoked in March 2024, which prevented the builder from selling any unsold units. This ruling is a notable example of how regulatory bodies like H-RERA are protecting consumers’ rights in the real estate sector. Despite the builder’s failure to meet commitments, the buyers were able to receive justice thanks to the intervention of H-RERA. The couple has been granted a period of 90 days to receive their refund; if the developer fails to comply, further legal action will be initiated.
This case serves as a reminder of the importance of the Real Estate (Regulation and Development) Act, 2016, which aims to bring transparency and accountability to the real estate sector. It also highlights the need for buyers to be vigilant when making payments for real estate projects, ensuring that they receive formal agreements and documentation before parting with their money. The decision by H-RERA also shines a light on the need for stricter enforcement of regulations to protect homebuyers, especially in a market where developers often fail to meet their commitments. As more homebuyers are empowered to take action through platforms like H-RERA, it could signal a shift toward more accountability in the real estate industry. For the Guptas, this ruling offers some closure after a prolonged battle with the developer, but for many others, it highlights the importance of being well-informed about their rights in the real estate market.
