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Noida-based real estate developer NexGen Infracon has been ordered to pay a penalty for a five-year delay in delivering possession of a flat to a buyer. The buyer had booked a flat in Mahagun Mezzaria, located in Sector 78 of Noida, in 2017 and paid Rs 1.35 crore to NexGen Infracon. The promised deadline for flat delivery was December 2018, but the possession was handed over to the buyer in 2021, resulting in a significant delay.
The Uttar Pradesh Real Estate Regulatory Authority (RERA) intervened in the matter after the buyer filed a complaint seeking resolution and payment of penalty. RERA, established in 2017 to regulate the real estate sector and protect the interests of home buyers, passed an order in favour of the buyer. As per the order, NexGen Infracon had to hand over the flat along with a delay penalty of approximately Rs 16 lakh.
After the successful resolution, the buyer submitted proof of possession to the local authority, indicating satisfaction with the outcome. The delay penalty was calculated based on the marginal cost of lending rate, in accordance with RERA rules. The buyer had sought intervention from RERA to ensure that the developer honoured the conditions of the builder-buyer agreement.
This case is one among the thousands of cases handled by UP RERA regarding compliance with orders related to refunds and possession. The authority has received around 14,120 requests for compliance, out of which approximately 10,470 cases have been resolved successfully.
Homebuyers facing similar issues with developers are encouraged to report non-compliance through the UP RERA website, either at www.up-rera.in or www.up-rera.in under the section 'Order Execution Request.' This allows consumers to seek prompt action from RERA in cases where developers fail to comply with the authority's orders.
Delays in possession and failure to adhere to promised deadlines have been persistent issues in the real estate sector, causing inconvenience and financial burden for homebuyers. RERA was established to address such concerns and ensure transparency, accountability, and timely delivery of projects. It plays a crucial role in safeguarding the interests of homebuyers by providing a platform for dispute resolution and imposing penalties on non-compliant developers.
Homebuyers are advised to thoroughly research developers, review the terms and conditions of agreements, and file complaints with regulatory authorities in case of any violations. RERA's intervention serves as a deterrent against unscrupulous practices and emphasizes the importance of fulfilling commitments made to homebuyers.
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