Gurgaon: Haryana Real Estate Regulatory Authority (HRera) has ordered Ocean Seven Buildtech Pvt Ltd to pay delayed possession interest at 10.8% a year to 12 homebuyers of Expressway Towers. The authority had earlier taken suo motu cognizance of the project and frozen the promoter’s bank account on Feb 24, 2023.Holding that the developer failed to deliver flats — in the affordable housing project in Sector 109 — by the deadline of May 30, 2022, chairman Arun Kumar, in an order dated Sept 29, said the interest would run from the due date till a valid offer of possession plus two months after the occupation certificate (OC) is obtained, or actual handover, whichever is earlier. The 10.8% rate is State Bank of India’s marginal cost of lending rate of 8.8% plus 2%, as prescribed under Rule 15 of Haryana RERA Rules.The complainants, who bought units of 324 to 645 sq ft carpet area in 2017 and say they have paid roughly the full sale price, had sought interest from Sept 26, 2020. The authority, however, computed the due date under Affordable Housing Policy, 2013, which requires completion within four years of the later of building plan approval or environmental clearance. Environmental clearance came on Nov 30, 2017 and a six-month Covid extension pushed the deadline to May 30, 2022.The promoter did not file a reply despite several opportunities and the authority proceeded ex parte. It noted that nothing on record showed the developer had even applied for an OC or what the status of construction was and treated Expressway Towers as an ongoing project.Accrued arrears up to the date of the order must be paid within 90 days, with monthly interest thereafter before the 10th of every month. The developer must issue a revised statement of account within 30 days, after which buyers must clear dues, if any. Possession and conveyance deeds must follow within three months of the OC. Buyers will also pay the same 10.8% on any delayed instalments.On charges, the authority barred the developer from levying labour cess and work contract tax on allottees, saying buyers are neither employers nor contractors. VAT can be charged only at actuals, pro rata, with proof of payment, and only if the promoter has not opted for the composition scheme. Maintenance and utility charges must be levied on a consumption basis, in line with a Jan 2024 DTCP clarification.The authority turned down pleas for a local commissioner and a forensic audit, saying no evidence had been produced, and rejected a plea to restrain termination of units as speculative. Buyers alleging non-passing of input tax credit were also told to approach the state screening committee.
