The case involves residents who bought flats in Green View Society, only to discover serious structural issues shortly after moving in.
In a landmark decision, the Real Estate Regulatory Authority (RERA) of Haryana instructed the National Building Construction Corporation (NBCC) to pay Rs 30,000 every month to homebuyers in the Green View Society, located in Sector 37D, Gurugram, until their flats are ready for occupancy. The ruling comes in response to significant concerns over the safety of the buildings, highlighting the crucial role of RERA in safeguarding consumers’ rights in the real estate sector.
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The case involves hundreds of residents who purchased flats in the Green View Society, only to find that the buildings developed serious structural issues shortly after they moved in. Cracks began to appear, and following an inspection by engineers from IIT Roorkee, the buildings were declared unfit for habitation, posing serious safety risks. As a result, in March 2022, the residents vacated their flats and began renting alternative accommodation.
Two of the affected buyers, Saurabh Mehta and Jai Prakash Mehta, filed a complaint with RERA, which led to this significant ruling. According to RERA’s order, NBCC is obligated to pay Rs 30,000 per month to each affected homebuyer as compensation for their inability to live in their purchased flats. The payments are to be made starting within one month, and failure to comply will result in an additional penalty – interest at a rate of 10.5% per annum on the outstanding amount.
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The company had initially proposed demolishing the problematic towers and rebuilding them; however, the district administration has intervened, halting the demolition due to ongoing legal proceedings and disputes related to compensation.
The district administration clarified that a ban has been imposed on the demolition of the buildings until the legal cases are resolved. Homebuyers, particularly those from economically weaker sections, raised claims for compensation in the Delhi High Court. The court’s verdict is awaited before any demolition can proceed.
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Meanwhile, the administration urged the commissioner to expedite the registration of homebuyers so that they can receive their due compensation from NBCC.
NBCC had earlier argued that all seven towers in the society are at significant risk of collapse and should be demolished to protect residents. The District Magistrate had supported this recommendation, issuing an order for the prompt demolition of the towers. However, with legal hurdles in place, the process has been delayed. Until the demolition is carried out, NBCC will be required to continue the monthly payments to homebuyers, as directed by RERA.
