Haryana RERA Directs Ocean Seven Buildtech To Refund Homebuyer's Payment After Deducting ₹25,000 Under Affordable Housing Policy
Pranav B Prem
The Haryana Real Estate Regulatory Authority (HARERA), Gurugram has directed M/s Ocean Seven Buildtech Private Limited to refund the paid amount to the homebuyer after deducting ₹25,000 in accordance with Clause 5(iii)(i) of the Affordable Group Housing Policy, 2013. The order was passed by Member Phool Singh Saini, who clarified that cancellation of allotment in an affordable housing project is permissible only if the builder adheres to the mandatory cancellation procedure prescribed under the policy.
Also Read: Haryana RERA: Allottees Given Delay Interest Cannot Seek Additional Compensation
The complainant had been allotted Flat No. 306 on the third floor of Tower-9 in the “Expressway Towers” project after winning the draw of lots in April 2017. The total sale consideration was ₹12,28,000, out of which ₹7,31,251—approximately 60%—was paid. Despite receiving most of the consideration, the builder did not execute the buyer’s agreement, which the complainant argued was a violation of Section 13 of the Real Estate (Regulation and Development) Act, 2016. Under the Affordable Housing Policy, the possession due date was calculated as 30 November 2021, based on the environmental clearance dated 30 November 2017.
The complainant stated that construction progress stalled and that despite the delay, the builder issued a demand notice, threatening cancellation. It was submitted that further payments were stopped only because no progress was visible at the site and that the complainant was always ready to clear dues once construction was completed and a valid offer of possession was made. The complainant sought restoration of the unit, execution of the buyer’s agreement, and compensation for the delay.
The builder, however, contended that the complainant failed to clear dues despite reminders and that the allotment was cancelled on 03 September 2021. It relied on the demand notice dated 16 March 2020 and the publication of a defaulter’s list in the Hindi daily Gurgaon Mail on 19 June 2020. The builder maintained that cancellation was done strictly as per policy and that non-payment by the complainant left no other option.
The Authority examined Clause 5(iii)(i) of the Affordable Group Housing Policy, 2013, which permits cancellation only after (a) issuance of a 15-day payment reminder, (b) publication of the allottee’s name in a regional Hindi newspaper having over 10,000 circulation, and (c) a further 15-day opportunity to make payment. Upon cancellation, the builder is permitted to deduct ₹25,000 and must refund the balance amount to the allottee.
The Authority noted that although the cancellation followed procedural steps under the policy, there was nothing on record to show that the builder refunded the balance payable to the complainant after deducting ₹25,000. It also noted that despite the allotment being cancelled, the builder had failed to release the refundable amount and had delayed handing over possession for more than two years beyond the due date.
In light of these findings, the Authority held that the complainant was entitled to a refund of the paid amount, subject only to the permitted deduction. The Authority directed the builder to refund ₹7,31,251 after deducting ₹25,000 along with interest at 10.85% per annum from the dates of deposits until realization. The Authority granted the builder 90 days to comply, failing which further legal consequences would follow. The complaint was accordingly disposed of.
Cause Title: Sachin Kumar v. M/s Ocean Seven Buildtech Pvt. Ltd
Case No: Complaint No. 155 of 2024
Coram: Shri. Phool Singh Saini (Member)
