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The Haryana Real Estate Regulatory Authority (H-RERA) has ruled that Elan Buildcon must pay fixed returns to allottees and complete the conveyance deed in a dispute over commercial units in The Palm Springs Plaza, a Gurugram development. Allottees had alleged delays and contractual non-performance after making payments for units in the project. The adjudicating officer held that Elan Buildcon had failed to honour its contractual obligations on possession and conveyance, breaching terms of allotment. The authority directed the promoter to compensate buyers with fixed returns at 10.85 per cent per annum on amounts paid from due dates to payment, and to execute conveyance within 60 days of the order. H-RERA also imposed costs and rejected the promoter's counter-claims. The order underlines the regulator's emphasis on delivery timelines, contractual adherence and fairness in commercial project disputes.
The Haryana Real Estate Regulatory Authority (H-RERA) has directed Elan Buildcon to pay fixed returns to allottees and execute conveyance deeds for commercial units in The Palm Springs Plaza, after finding that the promoter breached key contractual obligations relating to possession and transfer of title. Advertisement
H-RERA's adjudicating officer examined a complaint filed by allottees who had booked commercial units in the mixed-use project on Golf Course Extension Road in Gurugram and alleged prolonged delays, failure to hand over possession as per contract, and non-execution of conveyance deeds despite full payments.
In its order, H-RERA found that Elan Buildcon failed to meet its contractual commitments by not completing construction and transferring conveyance rights within agreed timelines. The authority held that allottees were entitled to fixed returns under Section 18 of the Real Estate (Regulation and Development) Act, 2016 (RERA), which mandates compensation for delay or non-delivery of possession, where applicable.
H-RERA directed the promoter to pay allottees fixed returns at the rate of 10.85 per cent per annum on the amounts paid by the complainants. This interest is to accrue from the date the amounts became due until the date of actual payment by the promoter. In addition, the promoter has been ordered to execute the conveyance deed in favour of the allottees within 60 days of the order's issuance.
The adjudicating officer emphasised that execution of the conveyance deed transferring clear title of common areas and individual units to the respective buyers is a promoter's core obligation under the contractual framework and regulatory regime. The order underscored that delays in conveying title not only violate contractual terms but also deprive buyers of legal rights over their investments.
H-RERA also imposed litigation costs on Elan Buildcon and dismissed the promoter's counter-claims, which sought relief on grounds of alleged force-majeure and changes in market conditions. The authority noted that such arguments did not absolve the promoter of its statutory and contractual duties to deliver possession and complete legal formalities within reasonable timeframes.
The scope of RERA is to protect the interests of allottees by ensuring accountability and adherence to agreed timelines by promoters, the adjudicating officer wrote, underscoring the regulatory mandate to enforce delay compensation and conveyance completion.
Industry observers said the order reflects H-RERA's growing willingness to apply statutory interest provisions even in commercial unit disputes, extending enforcement norms typically associated with residential delivery delays to mixed-use and retail assets where contracts specify defined timelines.
The Palm Springs Plaza, positioned on one of Gurugram's key commercial corridors, has been a focal point of investor and occupier interest, but buyers have faced frustration over protracted handover and title transfer processes. By enforcing fixed returns and pressuring conveyance execution, the regulator has signalled that contractual non-performance will attract clearly defined financial consequences.
Legal experts note that while compensation obligations under RERA are well-established for residential delays, their application in commercial contexts strengthens overall market confidence by providing recourse for institutional and retail buyers alike. They said that timely execution of conveyance deeds is critical for buyers seeking to leverage legal ownership for financing, leasing or operational purposes.
The directive to award fixed returns and enforce conveyance adherence is likely to set a precedent for similar commercial disputes in Gurugram and other regulated markets, reinforcing statutory accountability for developers in both residential and non-residential sectors.
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