Promoter liable to pay delayed possession charges: Tribunal

The Haryana Real Estate Appellate Tribunal has held that a promoter is liable to pay delayed possession charges (DPC) to an allottee until the actual handing over of possession, if the original offer was made on the basis of an incomplete occupation certificate (OC). The tribunal also made it clear that the regulatory mechanism’s duty was to ensure all buildings in inhabited areas of townships complied with safety norms.

“The regulatory mechanism must ensure that the buildings that are allowed to come up in inhabited areas of various townships must adhere to all safety norms, fire safety being one of the primary concerns,” the tribunal, comprising Justice Rajan Gupta (Chairman) and Rakesh Manocha (Member, Technical) said.

The tribunal also ruled that the allottee in the case was entitled to delayed possession charges till September 4, 2023, along with 9.3% interest per annum, from the due date of possession on May 6, 2016. The case pertained to a unit in a project in Gurugram.

The tribunal observed that the promoter had issued an offer of possession on October 13, 2017, following the issuance of an OC on October 9, 2017. But the OC was conditional in nature as the second staircase had not been built, leading to concerns regarding fire safety. “It is, thus, evident that the allottee may have been hesitant to take possession as the OC was conditional in nature,” the tribunal observed, adding that the completion certificate was apparently granted to the promoter on December 13, 2019. But there was nothing on record to show that fresh offer of possession was made thereafter by the promoter.

This was despite the fact that full-sale consideration of Rs 1,52,00,254, including additional charges for enhanced area, had been remitted to the promoter.