The Haryana Real Estate Regulatory Authority (HRera) has issued a decisive order against the developer of Spectrum One in Gurgaon's Sector 58, mandating the settlement of long-pending assured returns and the formalization of property titles for two investors. The authority has given the builder, Splendor Buildwell, a strict 90-day deadline to comply.
The Core of the Dispute: Stopped Payments and Pending Titles
In a detailed order reserved on November 27 and officially pronounced on December 18, HRera member Phool Singh Saini consolidated three complaints filed by investors Tripti Vohra and Amit Vohra. The complaints centered on delayed possession, the abrupt stoppage of assured monthly returns, and the non-execution of the final sale agreements.
The Vohras had invested in three small commercial units in Tower D of the nearly seven-acre project back in 2016. Their investment was made under an assured return plan via Memorandums of Understanding (MoUs), where they paid an amount exceeding the basic sale price upfront. As per the plan, Splendor Buildwell committed to pay assured returns of Rs 71.5 per square foot per month starting August 1, 2016, until the first lease of the units. This was to be followed by assured rentals at Rs 58.50 per sq ft per month.
While the developer made payments until May 2018, they subsequently halted further payouts. Splendor Buildwell cited the Banning of Unregulated Deposit Schemes Act, 2019 (BUDS Act) and other legal objections as justification for stopping the payments.
HRera's Landmark Ruling and Directives
HRera firmly rejected the builder's defense. The authority held that assured return commitments, when they form an integral part of the builder-buyer agreement, remain fully enforceable under RERA regulations. Crucially, it clarified that such commitments are protected under Section 24(1)(iii) of the BUDS Act itself.
Consequently, the authority passed the following directives:
- Splendor Buildwell must pay the assured returns at the agreed rate of Rs 71.5 per sq ft per month from June 2018 until the date of the first lease.
- Thereafter, the developer must pay Rs 58.5 per sq ft per month until the unit is actually leased out.
- The entire outstanding accrued amount must be released to the allottees within 90 days, after adjusting any legitimate dues from their side.
- Failure to pay within this period will result in the amount attracting an annual interest rate of 8.8% until it is fully realized.
Order to Execute Conveyance Deed and Charge Restrictions
Noting that the project's occupation certificate was issued on September 6, 2019, HRera further ordered the developer to take concrete steps towards transferring ownership. It directed Splendor Buildwell to execute the conveyance deed for the revised units in favor of the Vohras within the same 90-day window.
In a significant relief for the investors, the authority also barred the company from levying any additional charges not stipulated in the original 2016 MoU. This prohibition explicitly includes any internal or external development charges (IDC/EDC).
This order serves as a strong precedent for homebuyers and investors who entered into assured return schemes, reinforcing the power of RERA in upholding contractual obligations and protecting consumer interests in the real estate sector.
