HRERA orders 10.8% interest penalty on Godrej Developers for delays in Gurugram. Ruling dismisses "Pollution Bans" as valid Force Majeure, calling them predictable. Buyers entitled to interest on total amount paid, overriding weak contract penalties.
For years, homebuyers in Delhi-NCR have heard the same excuse: "We can't finish your flat because of the government's pollution ban." This week, the Haryana Real Estate Regulatory Authority (HRERA) officially declared that excuse invalid.
In a landmark judgment involving Godrej Real View Developers and their project Godrej Meridien-I in Sector 106, Gurugram, the authority has strengthened the spine of every homebuyer waiting for their keys.
The Case: A 4-Year WaitThe complainants, Malik Ram and Sarita Verma, had booked a luxury apartment for ₹1.75 Crore.
- Original Deadline: September 30, 2020.
- RERA Extension: The authority granted a standard 6-month extension due to COVID-19, moving the deadline to March 30, 2023.
- The Reality: The developer failed to meet even the extended deadline, finally offering possession in May 2024.
The "Force Majeure" Defense Falls FlatThe developer argued that the delay was beyond their control due to COVID-19, labour shortages, and the annual GRAP (Graded Response Action Plan) construction bans in NCR.
HRERA’s Game-Changing Ruling:
- Pollution is Predictable: HRERA stated that air pollution bans in NCR are an annual, recurring phenomenon. They are "predictable events," not sudden "Acts of God." A competent developer should factor these 2-3 months of downtime into their initial timeline.
- COVID is Over: The specific relief for COVID-19 (6 months) was already granted. Developers cannot use the pandemic as a perpetual shield for delays occurring years later.
- The Penalty: The authority ordered the developer to pay interest at the rate of 10.8% per annum (SBI MCLR + 2%) for the entire period of delay.
What This Means for YouIf you are a homebuyer with a delayed unit:
- Check Your Date: Look at the "Date of Possession" in your Builder-Buyer Agreement (BBA). Add 6 months for COVID if the project was active in 2020.
- Ignore the "Standard" Clause: Most agreements say the builder will pay ₹5 or ₹10 per sq ft for delays. RERA overrides this. You are entitled to interest on your paid amount, which is significantly higher.
- Don't Settle Easily: This ruling sets a precedent. If your builder cites "pollution," you now have a legal order proving that excuse doesn't hold water.
