Haryana RERA Orders Emaar MGF To Pay 10.85% Interest To Homebuyer For Six-Year Delay In Possession
Sangeetha Prathap
The Haryana Real Estate Regulatory Authority (RERA), Gurugram has held that Emaar MGF Land Ltd. failed to honour its contractual obligation to hand over possession of a unit in its Emerald Floors Premier Phase-III project within the agreed timeline and has directed the developer to pay delayed possession interest at 10.85% per annum from 28 May 2014 until the offer of possession plus two months or the actual handover, whichever is earlier. The order was delivered by Member Ashok Sangwan on 26.11.2025
The complaint was filed by a homebuyer who had booked a 1,650 sq. ft. unit on the third floor of Tower 37 in Sector-65, Gurugram, after Emaar promoted the project through advertisements, layout plans and site visits. The flat was priced at approximately ₹1.15 crore, and the buyer ultimately paid around ₹1.23 crore to the developer. A Builder Buyer Agreement (BBA) was executed on 28 February 2012, under which possession was contractually due within 24 months with a three-month grace period, making 28 May 2014 the stipulated deadline
The homebuyer submitted that payment was made strictly as per the construction-linked plan and repeated follow-ups were made when the contractual possession date passed without any offer. In 2018, the developer asked the buyer to sign a Settlement-cum-Amendment Agreement, assuring that the unit was ready or would be ready shortly. Although the buyer signed the agreement under protest, they claimed they did so solely to ensure timely possession. Yet even after this agreement, the builder did not deliver the unit. The occupation certificate was eventually obtained only on 11 November 2020, and the offer of possession was issued on 18 November 2020, accompanied by what the complainant described as unreasonable and excessive charges. A conveyance deed was executed on 21 June 2021, and the unit, according to the complainant, had several pending defects
In its defence, the developer argued that the buyer had executed the conveyance deed and therefore no further claims could be raised, asserting that all financial liabilities stood settled on execution of the conveyance deed. The developer also attributed the delay in completion to external causes, including contractor disputes and changes mandated in the layout plan, contending that the delay was beyond its control. However, the Authority noted that the BBA expressly obligated the builder to deliver possession within the stipulated period, and the record demonstrated that the unit was not handed over within that timeline
After examining all documents, the Authority concluded that the delivery of possession had been significantly delayed beyond the approved contractual period. Relying on the possession clause in the BBA, the Authority held that the complainant was legally entitled to compensation at the rate of 10.85% per annum for the delayed period. The Authority rejected the buyer’s prayer to refund extra charges allegedly imposed at the time of handover, noting that once the conveyance deed has been executed, financial disputes relating to charges cannot be reopened, since execution of the deed signifies settlement of all monetary liabilities between the parties
The Authority found that Emaar had committed a breach of its contractual obligation by failing to deliver possession of the flat within the period stipulated under the Builder Buyer Agreement dated 28.02.2012. It accordingly directed the developer to pay delayed possession interest at 10.85% per annum from 28 May 2014 until the offer of possession plus two months or the actual handing over of the unit, whichever is earlier. At the same time, it rejected the buyer’s claim for refund of allegedly illegal or unreasonable charges, observing that such claims cannot be entertained after execution of the conveyance deed. With these directions, the complaint was disposed of.
Cause Title: Rajeev Kar & Anr Vs. M/s Emaar MGF Land Limited
Case No: Complaint No - 6105 of 2024
Coram: Member Ashok Sangwan
