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The Haryana Real Estate Regulatory Authority (HRERA) Gurugram bench has ordered one month of civil imprisonment for a developer who failed to refund INR 26.07 lakh to an investor in a delayed commercial project in Sector 89, Gurugram. Despite earlier directives, the developer ignored HRERA's ruling to pay back the amount with 10.75% annual interest. The investor, frustrated with long delays and non-payment of assured returns, approached HRERA, which ruled in his favor late last year. The authority's latest order also mandates the developer's appearance before the forum in the coming weeks.
The Gurugram bench of the Haryana Real Estate Regulatory Authority (HRERA) has sentenced a promoter of a real estate firm to one month's civil imprisonment after the developer failed to refund INR 26.07 lakh to an investor involved in a commercial project located in Sector 89, Gurugram. Advertisement
Earlier this week, HRERA adjudicating officer Rajender Kumar issued the order, highlighting that the developer neither complied with previous directives nor submitted any formal response. The order further instructed that the judgment debtor be presented before the HRERA forum in the coming weeks for further proceedings.
The complainant, Sohan Lal, a resident of Ghaziabad, had invested INR 26 lakh in a commercial project spread across 5.5 acres. The developer secured a license for the project from the Department of Town and Country Planning back in 2008, according to the HRERA ruling.
Under the terms of the agreement, the investor was promised possession within 36 months and a monthly return of INR 27,000 until the property handover. However, neither were the monthly assured returns disbursed nor was there any significant progress on the delivery of the 300 sq. ft. shop unit.
Disillusioned by the continuous delay, Sohan Lal turned to HRERA, expressing his unwillingness to continue waiting indefinitely for the possession, as noted in the order.
In a decision passed late last year, HRERA had instructed the developer to refund the entire investment amount with an interest of 10.75% per annum calculated from the date of each payment until the eventual refund, while permitting deductions for any assured returns already paid.
Despite the binding nature of this ruling, the developer failed to take any action, neither refunding the sum nor appearing in response to court summons. Consequently, HRERA decided to enforce its ruling strictly and sentenced the developer's director to civil imprisonment for one month due to non-compliance with the execution order.
This case underscores HRERA's increasing readiness to impose stringent penalties on non-compliant developers, reinforcing its commitment to safeguarding investor rights in the Gurugram real estate market.
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