Legal · HRERA Gurugram · October 2026

    A Gurugram buyer was ordered a refund. Then came₹13.26 lakh for the price rise he missed.

    On October 5, 2026, an officer of the Haryana property regulator ordered a builder to pay about ₹14.7 lakh in compensation over an affordable housing project in Sector 104 that never began. Most of that sum is for the rise in home prices the buyer lost out on. Here is what the order says, what the law says, and what to keep on file.

    Rashmi
    By Rashmi
    Real Estate Advisor, Gurugram · October 2026 · 6 min read
    ₹13,25,977
    Total the buyer paid for a flat that was never built
    PropNewsTime, ETConstructionWorld
    10.8%
    Yearly interest on the refund ordered on Jan 30, 2026
    PropNewsTime, ETConstructionWorld
    ₹14.7 lakh
    Compensation ordered on Oct 5, 2026, on top of the refund
    PropNewsTime, ETConstructionWorld
    100–120%
    Price rise in the estimate the order relied on
    PropNewsTime, ETConstructionWorld

    What the order says.

    HRERA is the Haryana Real Estate Regulatory Authority. It is the state body that handles complaints from home buyers. It also has an adjudicating officer. That is a judicial officer who decides how much compensation a buyer should get.

    According to PropNewsTime and ETConstructionWorld, adjudicating officer Rajender Kumar passed an order on October 5, 2026. It directs Czar Buildwell Pvt Ltd to pay about ₹14.7 lakh to a Delhi buyer. The project is Mahira Homes-104, an affordable housing project in Sector 104, Gurugram.

    The buyer had booked a flat on the 16th floor of Tower 3. The carpet area, which is the floor space inside the walls, was a little over 643 sq ft. He paid ₹1,29,299 as the booking amount. Later he paid ₹5.3 lakh in December 2021, ₹3.3 lakh in May 2022 and ₹3.3 lakh in February 2023. That adds up to ₹13,25,977.

    The complaint says no allotment letter was ever issued. An allotment letter is the builder's written confirmation that a specific flat is yours. The complaint also says no builder-buyer agreement was signed. That is the contract between buyer and builder. When the buyer visited the site, he reportedly found vacant land.

    There were two separate steps. On January 30, 2026, in a separate complaint, HRERA ordered the builder to refund the full ₹13,25,977 with 10.8% yearly interest, counted from each payment date. The reports say that order was not challenged and is now final. The October order is a second step. It deals with compensation for what the buyer lost beyond the refund.

    The officer awarded ₹13,25,977 for loss of property appreciation. Appreciation means the rise in a property's value over time. He also awarded ₹1 lakh for mental agony and harassment, and ₹50,000 for litigation expenses. These add up to about ₹14.7 lakh. The builder must also pay 11% yearly interest on this amount from the date of the order until it pays.

    I have not read the order itself. This summary relies on the news reports below. Sources: PropNewsTime, "Haryana RERA directs Czar Buildwell to pay INR 14.7 lakh compensation to homebuyer over stalled Gurugram housing project"; ETConstructionWorld, "Hrera orders compensation in stalled Gurugram affordable housing case" (Oct 21, 2026); Ghar.tv (Oct 21, 2026).

    How the officer put a number on a price rise that never happened.

    The buyer asked for ₹25 lakh in damages and ₹1.1 lakh in litigation costs. PropNewsTime reports that the officer found the evidence of price rise to be inconclusive. But he held that missing proof alone was not a reason to reject the claim.

    The order then referred to estimates that homes under the Deen Dayal Jan Awas Yojana in Sector 104 had risen about 100% to 120% between February 2023 and January 2026. That is a state affordable housing scheme. According to the reports, the estimate linked the rise to the full opening of the Dwarka Expressway and to a state policy that stopped fresh licences under the scheme in Gurugram.

    On that basis, the officer presumed the buyer's money would have grown at least as much if it had gone into a comparable nearby project. He set the lost appreciation at an amount equal to what the buyer had paid: ₹13,25,977.

    Sources: PropNewsTime; ETConstructionWorld (Oct 21, 2026); Ghar.tv (Oct 21, 2026).

    The case in dates.

    The refund and the compensation came from two separate steps, about eight months apart.

    WhenWhat happened
    Dec 2021Buyer pays ₹5.3 lakh, after the ₹1,29,299 booking amount.
    May 2022Buyer pays ₹3.3 lakh.
    Feb 2023Buyer pays another ₹3.3 lakh. Total paid reaches ₹13,25,977.
    Jan 30, 2026HRERA orders a full refund with 10.8% yearly interest from each payment date. Not challenged, so it is final.
    Oct 5, 2026Adjudicating officer orders about ₹14.7 lakh in compensation, plus 11% yearly interest from the order date.
    Oct 21, 2026The order is reported by ETConstructionWorld, PropNewsTime and others.

    Sources: PropNewsTime; ETConstructionWorld (Oct 21, 2026).

    What RERA says

    Refund and compensation are two different things in the Act.

    RERA is the Real Estate (Regulation and Development) Act of 2016. Three parts matter here.

    Section 18(1): if a builder fails to complete or give possession, it is liable, "on demand" and "without prejudice to any other remedy available," to return the amount it received, with interest at the prescribed rate, "including compensation in the manner as provided under this Act," when the buyer wishes to withdraw from the project.

    Section 71(1): for adjudging compensation under Sections 12, 14, 18 and 19, the Authority appoints an adjudicating officer, who is or has been a District Judge.

    Section 72: while deciding the amount of compensation or interest, the adjudicating officer must have due regard to four factors: (a) the amount of disproportionate gain or unfair advantage, wherever it can be counted, that the builder made from the default; (b) the amount of loss caused by the default; (c) whether the default was repeated; and (d) any other factor the officer considers necessary to the case "in furtherance of justice."

    In plain words, the Act asks the officer to look at the loss caused by the builder's default. Section 72 does not name lost property appreciation. The reports say this officer counted it as part of the loss under that section.

    Source: Real Estate (Regulation and Development) Act, 2016, Sections 18, 71 and 72, as published on India Code (indiacode.nic.in) and Indian Kanoon.

    Four things to take from this case.

    This is general guidance, not legal advice. It is based on what the news reports say about the order.

    1. Ask for the allotment letter and the signed agreement

    In this case the complaint says neither was ever issued, yet the payments continued for over a year. Before you pay more than a booking amount, ask for both in writing. If a builder keeps saying they will come soon, take that as a signal to slow down.

    2. Keep every receipt and bank record

    The refund interest in this case was counted from each payment date, so the dates mattered. Keep proof of every payment: the amount, the date and who it was paid to.

    3. Know that a refund and compensation can be separate claims

    Here, the refund came first, in January. The compensation was decided in October. Whether both are open to you depends on your facts. A property lawyer can read your papers and tell you.

    4. Do not expect the same number

    This was one officer's assessment on one set of facts, using price estimates for one area over one period. Another officer, or another project, may get a different result.

    What this order does not tell you.

    An order awarding money is not money in the buyer's hand. The reports I found do not say whether Czar Buildwell has paid or will challenge the order.

    The price-rise figure came from an estimate. ETConstructionWorld reports that the order drew on an AI overview from Google for it. The reports also say the officer found the evidence inconclusive. I cannot say how this reasoning would hold up if tested in another case.

    The order is about an affordable housing project where, according to the complaint, no agreement was ever signed. If you hold a signed agreement in a different kind of project, your position may be different.

    The reports name the buyer and the builder. I have kept the buyer's name off this page because it does not change anything a reader needs.

    Rashmi
    Rashmi's take

    Paper first, payment second.

    What stands out to me in this case is the gap between the money going out and the paper coming in. According to the complaint, the buyer made payments from at least December 2021 to February 2023 and never got an allotment letter or an agreement.

    My advice is simple. Ask for the allotment letter and the signed agreement before you pay beyond the booking amount. Keep every receipt. Check the project's RERA registration on the Haryana RERA website. If something does not add up, ask the builder in writing.

    If you are comparing projects and want a second pair of eyes on the paperwork a builder is asking you to sign, message me. For the legal reading of any agreement, please use a property lawyer.

    Frequently asked questions.

    What did HRERA Gurugram order in the Mahira Homes-104 case?
    According to PropNewsTime and ETConstructionWorld, an adjudicating officer ordered Czar Buildwell Pvt Ltd on October 5, 2026 to pay about ₹14.7 lakh to a Delhi buyer. That is ₹13,25,977 for loss of property appreciation, ₹1 lakh for mental agony and harassment and ₹50,000 for litigation expenses, with 11% yearly interest from the order date.
    Was this on top of a refund?
    Yes, as reported. On January 30, 2026, in a separate complaint, HRERA ordered a refund of ₹13,25,977 with 10.8% yearly interest from each payment date. The reports say that order was not challenged and is final. The October order deals with compensation.
    What is loss of appreciation?
    Appreciation is the rise in a property's value over time. Loss of appreciation is the rise a buyer could have gained if his money had gone into a project that was actually built. In this case the officer estimated it using reported price rises of 100% to 120% for affordable homes in Sector 104 between February 2023 and January 2026.
    Does the RERA Act say buyers get compensation for lost price rise?
    Not in those words. Section 72 tells the adjudicating officer to look at factors such as the amount of loss caused by the default and any other factor the officer considers necessary in furtherance of justice. The reports say this officer counted lost appreciation as part of the loss under Section 72.
    Will every Gurgaon buyer in a stalled project get the same amount?
    No. This is one officer's order on one set of facts. The amount depends on the case, the evidence and the officer. If you are in a stalled project, speak to a property lawyer about your own papers.
    Explore further

    This post summarises public news reporting and is not legal advice. For a specific dispute, speak to a property lawyer.

    About to pay a builder in Gurgaon?Check the paperwork first.

    Send Rashmi the project name. She will help you list what to ask the builder for before you pay beyond a booking amount.