Landmark decision reinforces that possession and conveyance deed do not nullify rights under RERA, ensuring promoter accountability for delayed projects
In a significant ruling, the Haryana Real Estate Appellate Tribunal has upheld the rights of real estate allottees to claim compensation for delayed possession, even after the execution of a conveyance deed and the handing over of possession. The Tribunal, presided over by Justice Rajan Gupta, Dr. Virender Parshad, and Dinesh Singh Chauhan, delivered this landmark judgment on July 2, 2026, in the case of Emaar India Limited v. Poonam Goel and others.
The case arose from a series of appeals by Emaar India Limited concerning delayed possession charges related to its "Gurgaon Greens" project in Sector 102, Gurugram. The allottees, having been promised possession by November 2016, did not receive their units until May 2019, despite having paid the full consideration by then. The allottees subsequently filed complaints seeking compensation for the delay.
The Tribunal reaffirmed that the Real Estate (Regulation & Development) Act, 2016 (RERA) grants statutory rights to allottees, which remain intact regardless of the conveyance deed execution or possession handover. It emphasized that the promoter's obligation to deliver possession within the agreed timeline is both contractual and statutory. The Tribunal dismissed the promoter’s contention that all contractual obligations were discharged upon conveyance deed execution, noting that such an interpretation would undermine the protective intent of the legislation.
Citing precedents, including the Supreme Court's ruling in Wing Commander Arifur Rahman Khan v. DLF Southern Homes, the Tribunal underscored that allottees could claim compensation post-conveyance deed execution if there were delays. The Tribunal also clarified that the Limitation Act, 1963, does not apply to proceedings under RERA unless expressly stated, ensuring that allottees' claims are not barred by limitation.
The Tribunal's decision mandates Emaar India Limited to pay interest at 11% per annum for the delay, aligning with the interest rate charged to allottees for any default on their part. This uniform interest rate was deemed fair and necessary for maintaining equity between promoters and consumers.
This ruling reinforces the accountability of real estate promoters and the enduring rights of allottees under RERA, marking a significant victory for consumers in the real estate sector.
Bottom Line:
A conveyance deed or possession of property does not extinguish the rights of allottees under the Real Estate (Regulation & Development) Act, 2016 to claim compensation for delayed possession.
Statutory provision(s): Real Estate (Regulation & Development) Act, 2016 - Section 18, Section 31, Section 37; Limitation Act, 1963
