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March 30, 2026 : The Haryana Real Estate Regulatory Authority (HRERA), Gurugram has awarded compensation exceeding ₹4.16 crore to a homebuyer in the Chintels Paradiso project, holding the developer accountable for severe structural defects and refusing to rely on committee-recommended compensation rates.
The order was passed by Adjudicating Officer Rajender Kumar in Aruna Garg v. M/s Chintels India Private Limited (Complaint No. 2932-2024), decided on March 30, 2026.
The complainant, Aruna Garg, had purchased a 4 BHK apartment measuring 3,150 sq. ft. in Tower C of the project located in Sector 109, Gurugram. She paid over ₹1.80 crore towards the sale consideration along with ₹4.60 lakh in stamp duty and took possession in October 2019.
However, soon after possession, significant structural defects began to emerge, including cracks, missing tiles and deterioration in both the unit and common areas. The issue escalated following the February 10, 2022 collapse of a portion of a flat in Tower D, which resulted in fatalities. Investigations by committees constituted by the district administration and structural audits conducted by IIT Delhi revealed widespread corrosion in reinforcement and poor-quality concrete. The expert findings concluded that repairs were neither technically nor economically feasible.
The Authority observed that the defects were systemic, noting that the entire project had been rendered unsafe for habitation and that the allottee could not be held responsible. It held the developer solely liable for failing to construct the project in accordance with prescribed standards.
During the proceedings, the developer relied on compensation rates proposed by a District Collector-led committee, which ranged around ₹7,500 per sq. ft. The complainant rejected these rates as inadequate, citing significantly higher prevailing market prices in the area.
Rejecting the committee-based framework, the Authority noted that the complainant was not a party to earlier proceedings before the Supreme Court and that neither party was willing to proceed under that mechanism. It further emphasized that RERA proceedings are guided by principles of natural justice rather than strict evidentiary rules.
Significantly, the Authority considered prevailing market trends, including an AI-based overview of property price appreciation in Sector 109. It recorded that property prices had risen from approximately ₹6,500–7,000 per sq. ft. in early 2022 to around ₹12,000–12,400 per sq. ft. by early 2026, reflecting an increase of nearly 64.7%.
Taking these factors into account, the Authority fixed compensation at ₹13,000 per sq. ft., awarding ₹4,09,50,000 for the 3,150 sq. ft. unit, inclusive of the amount already paid. It also directed reimbursement of ₹4,60,000 towards stamp duty.
The Authority declined additional claims for renovation expenses due to lack of evidence, as well as claims relating to opportunity cost, rental losses, maintenance charges and loan burdens, noting that appreciation-based compensation had already been granted.
Further, ₹2 lakh was awarded for mental agony and harassment, along with ₹50,000 as litigation costs. The developer was directed to pay the total awarded amount with interest at 10.85% per annum from the date of the order until realization.
The ruling underscores HRERA’s willingness to depart from administrative committee benchmarks and instead align compensation with prevailing market realities, particularly in cases involving large-scale structural failures affecting habitability.