Haryana RERA Orders ₹14.7 Lakh Compensation for Gurugram Homebuyer in Failed Housing Project
Gurugram | October 21, 2026: A Gurugram homebuyer who paid more than ₹13 lakh for a flat in an affordable housing project that never took off has been awarded ₹14.7 lakh in compensation by the Haryana Real Estate Regulatory Authority (HRERA). The order also highlights the financial impact buyers can face when a stalled project prevents them from benefiting from rising property values.
HRERA directed Czar Buildwell Pvt Ltd to compensate Delhi resident Saurav Banerjee for loss of property appreciation, mental agony and litigation expenses.
Buyer Paid ₹13.25 Lakh for a Flat That Was Never Built
Banerjee, a resident of Dwarka, had booked a flat in Mahira Homes-104 in Sector 104, Gurugram.
He initially paid ₹1,29,299 as the booking amount. The developer subsequently allotted him Unit 1601 on the 16th floor of Tower 3, with a carpet area of more than 643 sq ft and a balcony of over 145 sq ft.
However, according to the complaint, no allotment letter was issued and no builder-buyer agreement was executed.
Banerjee made further payments of ₹5.3 lakh in December 2021, ₹3.3 lakh in May 2022 and another ₹3.3 lakh in February 2023. His total payment reached ₹13,25,977.
Site Visit Revealed No Construction
The buyer later visited the project site and found only barren land, according to the case details.
Despite repeated enquiries, he said the developer continued assuring him that the allotment letter would be issued. The project, however, did not progress as expected.
HRERA had earlier ordered the developer to refund the entire ₹13,25,977, along with 10.80% annual interest calculated from the dates of the respective payments. That earlier order was not challenged and has since become final.
HRERA Awards ₹13.2 Lakh for Lost Property Appreciation
Banerjee subsequently sought ₹25 lakh as compensation, arguing that property prices around the project had increased substantially during the period his money remained tied up.
The adjudicating officer, Rajender Kumar, did not find conclusive evidence to establish the claimed 100% to 200% rise in property values. However, the authority held that compensation could still be assessed under Section 72 of the Real Estate (Regulation and Development) Act, 2016.
The order ultimately treated the buyer's loss of appreciation as equivalent to the amount he had paid and awarded ₹13.2 lakh under this head.
Additional ₹1.5 Lakh Awarded for Harassment and Legal Costs
Apart from the compensation for loss of appreciation, HRERA awarded the buyer:
- ₹1 lakh for mental agony and harassment
- ₹50,000 towards litigation expenses
This brought the total compensation to approximately ₹14.7 lakh.
The amount will also carry 11% annual interest from the date of the order until payment, according to the order.
Property Prices Became a Key Factor in the Case
Banerjee's counsel argued that property prices around the project had doubled or even tripled. While the adjudicating officer found that there was insufficient reliable evidence to establish those exact increases, the order considered the broader appreciation in the surrounding market.
The order referred to an AI-generated Google overview indicating that prices of homes under the Deen Dayal Jan Awas Yojana in Sector 104 had increased by roughly 100% to 120% between February 2023 and January 2026.
The order linked the reported rise to the operationalisation of the Dwarka Expressway and the state's decision to stop issuing fresh licences under the housing scheme in Gurugram.
What This Means for Homebuyers
The case highlights a critical risk for buyers in affordable housing projects: the loss from a stalled development may extend beyond the money originally paid to the developer.
When a project remains incomplete for years, buyers can lose access to potential property appreciation while their capital remains tied up. The ruling also shows that compensation proceedings can consider the broader financial consequences suffered by a buyer, although the amount ultimately depends on the evidence and circumstances of each case.
For buyers considering an under-construction project, checking the project's HRERA registration, approvals, construction progress, allotment documents and payment records before committing significant funds remains essential.
What Happens Next
Czar Buildwell has been directed to pay the awarded compensation along with the applicable interest. The case also adds to the growing importance of regulatory oversight in Gurugram's affordable housing market, where delays can have significant financial consequences for buyers.
For prospective homebuyers, the larger takeaway is clear: a low-cost flat is not necessarily a low-risk investment. Project approvals, construction status and the developer's compliance record should be verified before making payments.