Best Haryana RERA - Gurugram Lawyer

Haryana is unusual in having two RERA authorities. One sits in Gurugram and deals only with projects in Gurugram district. The other sits in Panchkula and covers the rest of the state. If your project is anywhere in Gurugram, whether in the older sectors around Golf Course Road and Sohna Road, in New Gurugram along the Dwarka Expressway, or further out towards Sohna and Manesar, your complaint goes to the Haryana Real Estate Regulatory Authority, Gurugram, usually called HRERA Gurugram.

Gurugram has one of the largest concentrations of high-value residential and commercial projects in India, and one of the longest lists of delayed ones. HRERA Gurugram has built up a large body of orders on delay interest, refunds, extra charges and possession, and an active practice of executing its own orders. This page explains how it works, what's specific to Gurugram projects, and what buyers and developers should expect.

The two Haryana authorities

When Haryana set up its regulatory structure under the Real Estate (Regulation and Development) Act, 2016, it created a separate authority for Gurugram because of the sheer number of projects there. The split is by the location of the project:

• HRERA Gurugram for projects in Gurugram district.
• HRERA Panchkula for projects in every other district of Haryana, including Faridabad, Sonipat, Panipat, Karnal, Rewari, Dharuhera, Bahadurgarh and Panchkula itself. See our page on HRERA Panchkula.

Both apply the same Act and the same Haryana Real Estate (Regulation and Development) Rules, 2017, and appeals from both go to the same Haryana Real Estate Appellate Tribunal at Chandigarh. But each has its own members, adjudicating officers, cause lists and practices. A complaint filed in the wrong authority will be returned, so check the project's location and registration first.

Complaint forms: CRA and CAO

The Haryana rules use two complaint forms, which reflects the division of work the Supreme Court later confirmed in Newtech Promoters and Developers v. State of UP (2021):

• Form CRA is a complaint to the authority. It is the form for refunds with interest, interest for delayed possession, directions to hand over possession or execute a conveyance deed, challenges to extra charges, and other violations of the Act.
• Form CAO is a complaint to the adjudicating officer, for compensation under Sections 12, 14, 18 and 19, taking into account the factors in Section 72.

A buyer with both a refund claim and a substantial compensation claim may need to file both. In practice, many Gurugram buyers file the CRA first, since refund or delay interest is the main relief, and decide on a CAO for compensation later, with evidence of their actual losses such as rent paid or extra loan interest.

Complaints are filed online through HRERA Gurugram's portal, with the fee prescribed by the rules and copies of the key documents. The authority's practice notes and filing requirements change from time to time, so it's worth checking the current version before filing.

What HRERA Gurugram hears most

• Delay interest for buyers who want to stay, often for many years of delay. See delay interest.
• Refunds with interest for buyers who want out. See refunds.
• Possession without a valid occupancy certificate or with improper demands. See possession without OC.
• Extra charges: increases in super area, preferential location charges, car parking, club charges, advance maintenance, and charges passed on from the developer's own liabilities. See extra charges.
• Conveyance deeds not executed after possession. See registry delays.
• Commercial units and assured returns, which are common in Gurugram's office and retail projects. See assured returns.
• Affordable housing projects under the state's policy, discussed below.
• Cancellations and forfeiture, including the 10% earnest money limit discussed below. See cancellation.

How delay is worked out in Gurugram cases

Most delay complaints turn on one question: when was possession actually due? Gurugram agreements, especially older ones, rarely give a simple date. They tend to say something like "within 36 months from the date of approval of building plans or start of construction, whichever is later, with a grace period of 6 months". The authority then has to work out the due date from the facts.

Points that commonly arise:

• The starting point. Where the agreement links possession to an event such as approval of building plans, environmental clearance or the start of construction, the authority looks at when that event actually happened. Where the agreement is vague or the event is entirely within the developer's control, the authority has often taken the date of the agreement or allotment instead.
• Grace periods. Whether a grace period is allowed depends on its wording and whether the developer showed any reason for it. Authorities have sometimes allowed an unconditional grace period and refused a conditional one where the condition wasn't met.
• Excluded periods. Developers frequently ask for the NCR construction bans, the COVID-19 period and court orders to be excluded. The authority has allowed specific, proven periods in some cases and refused general claims.
• The end point. Delay interest usually runs until a valid offer of possession after the occupancy certificate, plus a short period, or actual possession if earlier.

Interest is at the rate in Rule 15 of the Haryana rules: the State Bank of India's highest marginal cost of lending rate plus 2%. The same rule governs interest buyers pay on their own late payments, which is the parity Section 2(za) of the Act requires.

The 10% forfeiture limit on cancellation

Haryana RERA Gurugram issued regulations in 2018 limiting the amount a developer can forfeit on cancellation of an allotment to 10% of the consideration amount of the unit, with the balance to be refunded. The authority has applied this limit in many cancellation disputes, often in cases where the developer had forfeited much larger sums under older agreements. Where the developer forfeited more than 10%, or forfeited without a valid cancellation, buyers have recovered the excess with interest.

The details of how the limit applies, especially to cancellations before the regulations and to agreements with different terms, depend on the facts. See our page on cancellation and forfeiture.

Affordable housing projects

Gurugram has many group housing projects under Haryana's Affordable Housing Policy, 2013. These have features that matter in RERA complaints:

• the price is fixed by the policy per square foot of carpet area, with limits on extra charges;
• allotment is by draw of lots, and payments follow a fixed instalment schedule;
• the policy sets a time for completion, generally linked to building plan approval or environmental clearance, whichever is later; and
• the policy has its own rules on cancellation and forfeiture.

Several affordable projects in Gurugram stalled, and the authority and the state's town and country planning department have both been involved in trying to get them completed, including by bringing in other developers. Buyers in such projects should look at both the policy and the Act, since the policy's terms often limit what the developer can charge or forfeit. Plotted colonies under the Deen Dayal Jan Awas Yojana raise similar issues for plot buyers.

Licensed colonies and DTCP approvals

Private development in Gurugram happens on land licensed by the Department of Town and Country Planning under the Haryana Development and Regulation of Urban Areas Act, 1975. The licence, the building plan approvals, environmental clearance and the occupancy certificate are all part of the story in a typical complaint. Developers also pay external and infrastructure development charges (EDC and IDC) to the state, and disputes about whether buyers should bear increases in these come up regularly.

A licence can be cancelled or a developer barred from new licences for defaults, which in turn affects stalled projects. Where the DTCP has taken action against a developer, buyers' complaints before HRERA Gurugram often need to take that into account, for example when deciding between a refund and waiting for a takeover.

Structural safety

In February 2022, part of a residential tower in a Sector 109 society collapsed, killing two residents. The incident led to structural audits of a number of Gurugram buildings and, in some cases, to towers being declared unsafe and residents moving out. Structural defects reported within five years of possession are the developer's responsibility under Section 14(3), and authorities have entertained complaints about them. Where a tower has been declared unsafe, buyers' options may include refund or alternative accommodation claims, depending on the facts. See defects.

Hearings at HRERA Gurugram

Complaints are listed before the authority's members, and hearings are generally short. The authority often decides matters on documents, so a well-prepared complaint with a clear payment table and the relevant agreement clauses does a lot of the work. Developers usually file written replies, and the authority may ask either side for clarifications, calculations or documents such as the occupancy certificate or the building plan approval.

Some practical points:

• Attend every date. Complaints have been dismissed for non-prosecution when complainants didn't appear, though restoration is possible.
• Bring the numbers. The authority wants the total paid, the dates and any amounts the builder says are outstanding.
• Be clear about what you want. Refund or delay interest, and any specific directions, such as withdrawal of a demand or execution of a conveyance deed.
• Use online hearings where available, especially if you live outside the NCR.

Execution: getting the order enforced

An order is only useful if it is paid or carried out. In Gurugram, a buyer whose order hasn't been complied with usually files an execution petition before HRERA Gurugram. The authority has been active in execution. It can direct the developer to appear and explain, direct disclosure of bank accounts and assets, order attachment of bank accounts and unsold units, refer recovery to the Collector as arrears of land revenue under Section 40, and start penalty proceedings under Section 63.

Execution tends to work quickly against developers with bank balances or unsold inventory in Gurugram. It is slower against developers in deep financial trouble, and stops altogether once a developer is admitted into insolvency. Our pages on recovery and builders ignoring orders explain the options.

Appeals

Orders of HRERA Gurugram and its adjudicating officers can be appealed to the Haryana Real Estate Appellate Tribunal at Chandigarh within 60 days. A developer appealing must deposit the amount payable to the buyer, or at least 30% of any penalty, before the appeal is heard. A further appeal on a substantial question of law lies to the Punjab and Haryana High Court under Section 58. See our pages on the Haryana Appellate Tribunal and the Punjab and Haryana High Court.

Gurugram-specific situations

Dwarka Expressway and New Gurugram

Sectors along the Dwarka Expressway were sold heavily from around 2010 onwards, on the promise of a road that took far longer than expected to complete. Developers in some projects have argued that delays in the expressway and associated infrastructure justified delays in possession. The authority has generally treated external infrastructure as part of the commercial risk the developer took on, unless the agreement clearly provided otherwise and the delay is shown to have prevented construction. Many New Gurugram projects have now been completed, but buyers there still bring claims for past delay, conveyance and extra charges.

Sohna

Projects in the Sohna area, many launched in the mid-2010s, have seen significant delays. Some are in licensed colonies under the general policy, others under affordable housing policies. Buyers should check which applies.

Commercial projects

Gurugram's commercial market includes many retail and office projects sold with assured returns or leasing arrangements. Buyers of commercial units are allottees under the Act, and complaints about delay, non-payment of assured returns and lease arrangements are heard by HRERA Gurugram, though assured return claims raise questions about the nature of the arrangement. See commercial buyers.

Large developers in difficulty

Some developers with large Gurugram portfolios have been through insolvency or court-supervised processes. The Unitech group, for example, was placed under a new board appointed with the Supreme Court's involvement in 2020 to complete its projects. Where a developer is in such a process, the forum and the remedies change, and buyers should check before filing. See builder insolvency.

Checks to make before filing a Gurugram complaint

A few minutes of checking before filing avoids objections later:

• Registration. Search the project on HRERA Gurugram's portal. Note the registration number, the registered phases or towers, and the declared completion date. If your tower is in a separately registered phase, use that registration.
• Who the promoter is. In Gurugram, the DTCP licence is often held by a landowning company while a different company develops and sells under a collaboration agreement. Both may be promoters under Section 2(zk). Name every entity that appears on your agreement, allotment letter and receipts, and the licensee if it's different. This matters later if one of them can't pay.
• Occupancy certificate status. Check whether an occupancy certificate has been issued for your tower, and when. It decides whether an offer of possession was valid and when delay interest stops.
• Earlier orders. Search the authority's orders for your project. Orders in other buyers' complaints often reveal the developer's defences, the dates the authority has accepted, and whether earlier orders are being complied with.
• Insolvency. Check whether the developer is in insolvency before the NCLT. If it is, a RERA complaint may not proceed, and you need to file a claim instead. See NCLT and builder insolvency.

Conveyance, the deed of declaration and the association

In Haryana, flat ownership in a multi-storey building is also governed by the Haryana Apartment Ownership Act, 1983. Under that Act, the developer is expected to submit a deed of declaration setting out the apartments, the common areas and each apartment's share in them, which is the foundation for the association of apartment owners and for conveyance of individual units. Problems with the deed of declaration, such as it not being filed or wrongly describing common areas, can delay conveyance deeds and the handover of maintenance.

Section 17 of the RERA Act separately requires the promoter to execute a registered conveyance deed in favour of the allottee and of the common areas to the association, and Section 11(4)(e) requires it to enable formation of the association. HRERA Gurugram has entertained complaints by buyers and associations seeking directions on both. Where the developer is holding back conveyance to collect disputed dues, the authority can direct execution on payment of the undisputed amount. See handover to the RWA and maintenance disputes.

Stamp duty and registration

When the conveyance deed is finally executed, the buyer pays stamp duty and registration charges at the rates applicable in Haryana at that time. Buyers sometimes ask whether the developer should bear any increase in stamp duty caused by its own delay. Arguments of this kind can be raised as part of a compensation claim before the adjudicating officer, but the outcome depends on the facts and on what the agreement says. It's not something the authority will order automatically.

For developers and agents in Gurugram

HRERA Gurugram registers projects and agents for Gurugram district, receives quarterly progress reports and annual audit reports, grants extensions and issues notices. Developers should bear in mind:

• the authority checks registration applications against DTCP licences, building plans and environmental clearances;
• quarterly reports and audit reports have been the subject of notices and penalties when missed;
• extensions for long-delayed projects may come with conditions;
• advertisements, including those placed by channel partners, must carry the registration number; and
• orders in buyer complaints must be complied with promptly, because execution and Section 63 proceedings follow.

See our pages on registration, compliance, builder defence and agent registration.

An illustration

Here's a made-up example. A buyer booked a 3BHK in a New Gurugram project in 2012 for Rs 1.15 crore and paid Rs 1.02 crore by 2016. The agreement promised possession within 42 months of building plan approval, plus a 6-month grace period. The building plans were approved in mid-2013. The occupancy certificate came in 2022, and possession was offered with a demand for Rs 9 lakh, including a super area increase and two years of advance maintenance.

The buyer files a Form CRA before HRERA Gurugram. The authority calculates the due date from the building plan approval, allows the grace period because it is unconditional in the agreement, and orders delay interest at the prescribed rate on the amount paid, from the due date until the offer of possession plus two months. It directs the developer to justify the super area increase with the approved plans and to limit advance maintenance to what the agreement provides. The delay interest is adjusted against the buyer's final dues, and the balance paid to her. When the developer delays executing the conveyance deed, she files an execution petition, and the deed is registered within a few months.

How we help

We act for buyers before HRERA Gurugram in complaints, compensation claims and execution, and for developers and agents in registration, compliance, notices and defence, never for both sides in the same project. Our Dwarka office is a short drive from Gurugram, and we regularly handle matters for buyers living abroad through online hearings and powers of attorney. See NRI buyers.

Frequently asked questions

Which RERA authority hears Gurugram complaints?

Haryana RERA, Gurugram, which covers projects in Gurugram district. Projects elsewhere in Haryana go to Haryana RERA, Panchkula.

What is Form CRA?

The Haryana form for complaints to the authority, used for refunds, delay interest, possession and other violations. Form CAO is for compensation claims to the adjudicating officer.

What interest rate does Haryana RERA award?

Under Rule 15 of the Haryana rules, the State Bank of India's highest marginal cost of lending rate plus 2%.

How much can a Gurugram builder forfeit on cancellation?

HRERA Gurugram's 2018 regulations limit forfeiture to 10% of the consideration amount, with the rest refundable, subject to the facts of each case.

What if the builder doesn't follow the HRERA Gurugram order?

File an execution petition. The authority can order attachment, refer recovery to the Collector and impose penalties for non-compliance.

Does the Dwarka Expressway delay excuse the builder's delay?

Generally not, unless the agreement clearly provides for it and the delay is shown to have prevented construction.

Where are appeals heard?

At the Haryana Real Estate Appellate Tribunal, Chandigarh, within 60 days, and then on questions of law at the Punjab and Haryana High Court.

Are affordable housing projects covered?

Yes. They are registered projects under the Act, and the Affordable Housing Policy's own terms on price, charges and timelines also apply.

General information about proceedings before the Haryana Real Estate Regulatory Authority, Gurugram under the Real Estate (Regulation and Development) Act, 2016 and the Haryana rules and regulations. Forms, fees, regulations and practice change from time to time; check the authority's website for current requirements. Not legal advice.