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Haryana Real Estate Regulatory Authority has ordered Splendor Buildwell to clear pending assured return dues and complete conveyance formalities for investors in its Spectrum One project in Gurugram within 90 days. The authority held that assured return commitments made in 2016 agreements remain valid and enforceable under RERA. It rejected the developer's claim that such payments were barred by later laws. The order also restricts the builder from levying additional charges and provides for interest if payments are delayed further.
The Haryana Real Estate Regulatory Authority has directed Splendor Buildwell to settle long-pending investor dues and complete conveyance formalities for its Spectrum One commercial project in Sector 58, Gurugram, within a period of 90 days. The direction followed complaints filed by investors who had booked commercial units under assured return agreements signed in 2016. Advertisement
The investors had paid the agreed sale consideration for three units in Tower D and were promised fixed monthly assured returns until the units were leased, followed by assured rental payouts. While the developer initially made payments, the assured returns stopped around mid-2018. The builder later cited legal objections, including provisions of the Banning of Unregulated Deposit Schemes Act, to justify the discontinuation.
After examining the agreements and submissions, the authority observed that the assured return clause formed part of a registered agreement and could not be ignored. H-RERA held that such commitments are covered under the Real Estate (Regulation and Development) Act and remain binding on the promoter. It noted that subsequent laws could not override contractual obligations already undertaken.
The regulator directed the developer to release all pending assured returns from the date payments were stopped until the first lease of the units, and thereafter pay the post-lease agreed amount until the units are actually leased. Any valid adjustments due from the investors can be set off while calculating the final payable amount.
H-RERA further noted that the project has already received an occupation certificate. In view of this, the authority ordered execution of conveyance deeds in favour of the investors within the same 90-day period. It clearly stated that no internal development charges, external development charges or other additional fees can be imposed beyond what was agreed in the original memorandum of understanding.
The order also specifies that if the builder fails to comply within the given timeline, the outstanding amount will attract interest at an annual rate of 8.8 per cent. The authority reiterated that timely compliance with contractual commitments is a core requirement under the regulatory framework.
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