HRERA orders Chintels to pay Rs 4 cr to Gurugram homebuyer

Haryana Real Estate Regulatory Authority (HRERA) has ordered builder Chintels India Pvt Ltd to pay compensation of over Rs 4 crore to a homebuyer, who had filed a complaint after a fatal structural collapse in Tower D revealed widespread construction defects. The complaint was filed by Delhi resident Aruna Garg, who had purchased a 4 BHK flat in Tower C of the project located in Sector 109.

According to her complaint, she paid approximately Rs 1.8 crore, more than the agreed price, and took possession in October 2019. However, soon after, problems began to appear in the flat, including broken tiles, uneven floors, and cracks in the balcony and common areas. Despite complaints, the developer did not fix these issues.

The matter came to a head on February 10, 2022, when a portion of Tower D collapsed, killing two people and injuring others. Subsequent investigations by the district administration and IIT Delhi revealed that chlorides in the concrete used in the construction had caused the steel to rust. For investors in Gurugram and broader Haryana, the decision underscores the need to assess developer track records on structural compliance and to factor in potential remediation liabilities. Projects with pending approvals or quality concerns may face elevated regulatory scrutiny, influencing risk premiums and financing terms in the residential segment.

Experts stated that the building’s condition was so poor that repairs were technically and economically unfeasible. The HRERA stated in its order that the entire project was no longer habitable and that Chintels India was solely responsible. The buyer was not to blame, having been assured of international-standard construction.

The authority, taking into account the increased property prices in Sector 109, fixed the compensation at Rs 13,000 per square foot and ordered an amount of Rs 4.09 crore to be paid to Garg.

“I think it is appropriate to allow compensation to the complainant at the rate of Rs 13,000 per square feet, amounting to Rs 4,0950,000 (13000x3150), including the amount of sale consideration, i.e., Rs 1,80,04,265 already paid by the complainant. By filing an affidavit, the complainant claimed that the same paid Rs 4,60,000 towards stamp duty charges at the time of registration of the Conveyance Deed and in addition, spent Rs 3,08,065 on renovation and woodwork, etc. The fact of payment of Rs 4,60,000 towards stamp charges is not denied on behalf of the respondent. However, learned counsel for the latter(respondent) doubted the expenditure of Rs 3,08,065 as shown by the complainant on renovation/woodwork, etc. The complainant did not adduce any evidence except the affidavit to verify the expenditure on renovation work/woodwork, etc. No reason to allow compensation of Rs 3,08,065 in this regard. However, the same (complainant) is allowed a sum of Rs 4,60,000 spent on purchase of stamp duty, to be paid by the respondent,” read the order.

Further, the total amount is subject to 10.8 per cent annual interest until it is fully paid. The builder was also directed to refund Rs 4.6 lakh in stamp duty, Rs 2 lakh for mental harassment, and Rs 50,000 as litigation expenses. However, claims for rent, EMIs and other additional claims were rejected.