HRERA Orders Imperia Structures To Pay Assured Returns; Quashes Pre-Possession Maintenance Demand
Pranav B Prem
The Haryana Real Estate Regulatory Authority (HRERA), Gurugram Bench, comprising Ashok Sangwan (Member), has directed Imperia Structures Ltd. to pay assured returns to an allottee who purchased an office space in the developer’s IT Park project “Mindspace” at Sector 52, Gurugram. The Authority clarified that in cases where an allottee is entitled to both assured returns and delay possession charges, the allottee shall be entitled to whichever amount is higher.
Background
The complainant purchased a virtual office unit in the “Mindspace” IT Park developed by Imperia Structures for a total consideration of Rs. 17,07,405. A Unit Buyer’s Agreement was executed on 08.09.2016, under which the entire payment was to be made by 31.08.2017. After completing all payments, a No Due Certificate was issued to the complainant on 18.09.2019. Under the agreement, the builder assured a monthly return of Rs. 29,310 from 01.09.2017 until valid possession of the unit was offered. The agreement further provided that the unit would be leased at a minimum rent of Rs. 58 per sq. ft., and in case the achieved rent was lower, the builder was liable to make good the shortfall.
Although an Occupation Certificate was obtained on 02.06.2020, the builder neither offered valid possession nor executed the leasing arrangement as promised. The assured returns also remained unpaid. Instead, a demand notice dated 07.08.2023 was issued to the complainant for holding and maintenance charges. Aggrieved, the complainant approached HRERA seeking directions for payment of assured returns, delivery of possession with delay interest, compliance with the leasing arrangement, and revocation of the demand letter.
Contentions of the Builder
Imperia Structures argued that the project’s delay was caused by force majeure conditions. The builder attributed the delay to the COVID-19 pandemic, construction bans imposed pursuant to Supreme Court orders, and defaults in payment of instalments by other allottees.
Findings of HRERA
The Authority observed that the builder had accepted money in advance and assured the complainant of monthly returns until the unit’s possession was offered. By failing to honour this commitment, the builder had violated its obligations, entitling the complainant to relief under the RERA Act.
The Authority emphasized that the purpose of delay possession charges is to safeguard the allottee’s investment by compensating for the time value of money when possession is not delivered on time. However, it clarified that where assured returns are contractually payable even after the due date of possession, such returns also serve the same compensatory purpose. Therefore, in such circumstances, the allottee will be entitled to either assured returns or delay possession charges, whichever is higher.
The Authority held that assured returns were payable until the offer of possession. Since the Occupation Certificate was obtained on 02.06.2020 and possession was offered on 22.06.2020, Imperia Structures was directed to pay assured returns at the agreed rate of Rs. 29,310 per month from 01.09.2017 to 22.06.2020, after adjusting any amounts already paid. The Authority also set aside the builder’s demand for holding and maintenance charges issued on 07.08.2023, while clarifying that the builder was entitled to recover maintenance charges only from the date of offer of possession, i.e., 22.06.2020.
HRERA allowed the complaint and directed Imperia Structures to pay assured returns to the complainant at the contractual rate until the date of offer of possession, while quashing the builder’s demand for holding and maintenance charges prior to such offer. The builder was, however, granted liberty to recover maintenance charges from the complainant prospectively from the date of possession.
Appearance
Complainant: Sunil Kumar (Advocate)
Respondent: Shubham Mishra (Advocate)
Cause Title: Amravati Devi V. M/s Imperia Structures Limited
Case No: Complaint No. 4136 of 2024
Coram: Ashok Sangwan [Member]
