The Haryana Real Estate Regulatory Authority (RERA) has directed Ansal Housing Limited to refund ₹77.35 lakh plus interest to a homebuyer after ruling that a possession offer made without an Occupation Certificate (OC) is legally invalid.
In a May 19 order, Chairman Arun Kumar found that the developer failed to provide valid possession of a unit in the “Estella” project at Sector 103, Gurugram, nearly a decade after the original deadline. The authority confirmed that an offer for “fit-outs” does not satisfy statutory requirements for handing over a property.
The dispute centers on Unit No. L-0401 in Tower-L, a 1,945 sq. ft. flat booked by the complainants in 2011. Although the Buyer Agreement was executed on May 7, 2012, with a delivery date set for November 7, 2015, the project remained incomplete. This ruling highlights how many com/fight-against-fraudulent-builders-in-india-nris-use-rera-and-consumer/”>NRIs use RERA and consumer laws to recover investments when developers fail to meet contractual and legal obligations.
Haryana RERA invalidates possession offer without occupation certificate
A key finding in the case was the invalidity of the possession offer issued by Ansal Housing Limited on October 10, 2024. The homebuyers argued, and the authority agreed, that this offer was made before the developer secured the mandatory Occupation Certificate.
Chairman Arun Kumar noted that a valid offer of possession can only be extended once the building is certified as fit for residence by the relevant government departments.
The authority observed the significant passage of time since the project’s intended completion. “There is a delay in handing over the possession as due date of possession was 07.11.2015 whereas, the respondent has failed to obtain the occupation certificate from the concerned authorities till date,” the Chairman stated in the May 19 directive.
This delay of nearly 10 years prompted the order for a full refund of the principal amount.
For investors living abroad, these protections are vital for project oversight. Many Indian diaspora can pursue legal cases remotely to address such delays without needing to be physically present in the country during every hearing. The ruling ensures that developers cannot bypass safety and completion standards by offering early “fit-out” possession to avoid penalties.
| Financial & Project Detail | Data Point |
|---|---|
| Total Sale Consideration | ₹77.09 Lakh |
| Actual Amount Paid by Buyer | ₹77.99 Lakh |
| Specific Refund Directed | ₹77,35,781 |
| Mandated Interest Rate | 10.80% per annum |
| Compliance Deadline | 90 Days |
Financial penalties and investigation into unregistered projects
Ansal Housing Limited must now pay interest at a rate of 10.80% per annum, calculated from the date of each payment made by the homebuyers until the money is realized. The authority also noted that the homebuyers challenged additional builder demands, such as unauthorized charges for external electrification. This case proves that com/rights-of-nris-under-the-rera-act-india-guide/”>understanding the mandatory rights of NRIs under the RERA Act is the first step in contesting unfair financial demands.
Beyond the individual refund, Haryana RERA has instructed its planning branch to investigate the “Estella” project further. The developer reportedly faces scrutiny for operating an unregistered project, which would be a direct violation of the RERA Act. The authority granted Ansal Housing Limited 90 days to comply with the refund order and interest payments to the affected homebuyers.
The developer has a history of similar regulatory challenges. In 2022, the authority issued arrest warrants against various directors of Ansal Housing Corporation for failing to deliver units and refund amounts in separate cases. This latest directive reinforces the regulator’s stance that an Occupation Certificate is a non-negotiable prerequisite for any valid handover of residential property in Haryana.
Frequently Asked Questions
Is an offer for ‘fit-outs’ considered a valid offer of possession?
No, Haryana RERA has ruled that an offer of possession for fit-outs made without an Occupation Certificate (OC) is invalid. A builder must obtain the official OC from the authorities before making a legally binding offer to hand over the unit.
What interest rate did the authority apply to the refund?
The authority directed Ansal Housing Limited to pay interest at a rate of 10.80% per annum on the refunded amount. This interest is calculated starting from the date each specific payment was originally made by the homebuyer.
How long does the builder have to pay the buyer back?
According to the directive issued on May 19, Ansal Housing Limited has been granted a period of 90 days to comply with the refund order and ensure the homebuyers receive their principal and interest.