Haryana developer jailed for failing to refund ₹26 lakh

The Haryana Real Estate Regulatory Authority (HRERA) has sentenced a real estate developer to one month in jail. This decision comes after the developer failed to refund ₹ 26.07 lakh to an investor. The penalty was announced by HRERA’s adjudicating officer, Rajender Kumar, on Monday. The investor, Sohan Lal from Ghaziabad, had put money into a commercial project in Gurugram. He was promised possession of a shop within three years, along with monthly returns of ₹ 27,000 until the shop was handed over. However, he did not receive either the shop or the promised returns. Lal grew frustrated with the ongoing delays and took his complaint to HRERA. On November 15, 2023, the authority ruled that the developer must refund Lal's investment at an interest rate of 10.75% per year. Despite this ruling, the developer did not comply or respond to HRERA’s orders. Due to the developer's failure to follow the court's directive, HRERA decided to take action. The developer's director will serve a month in civil imprisonment. The next hearing is scheduled for April 16, 2025.