The Real Estate Regulatory Authority (RERA), Punjab, has directed Omaxe New Chandigarh Developers Pvt Ltd to pay interest for the delay in handing over possession of a flat in its “Caspean E” project at “The Lake”, New Chandigarh, SAS Nagar (Mohali).
In an order passed on May 15, Member-II Arunvir Vashista allowed the complaint filed by Naresh Garg and Anju Garg, both residents of Gurugram, Haryana.
The couple had booked the unit through an agreement for sale executed on December 30, 2020. As per Clause 7.1 of the agreement, possession was to be delivered on or before July 31, 2023. The complainants submitted that they had paid more than 90 per cent of the total sale consideration. However, till date, neither possession nor the Occupation Certificate (OC) has been handed over.
The Authority observed that the project remains incomplete and no completion or occupation certificate has been obtained by the promoter. It noted that it would be “manifestly unfair” to make the allottees wait any longer for interest when no firm timeline for possession was available.
Statutory right to interest upheld
The Bench held that the right to claim interest for delayed possession under Section 18 of the Real Estate (Regulation and Development) Act, 2016, is statutory and indefeasible. The promoter’s failure to deliver possession within the agreed period automatically attracts liability to pay interest.
The respondent had contended that the delay was caused by force majeure conditions arising from the Covid-19 pandemic and delays in regulatory approvals. The Authority rejected the plea and held that the promoter had failed to fulfil its contractual and statutory obligations.
Directions to promoter
Allowing the complaint, the Authority directed Omaxe to pay interest on the amounts paid by the complainants at the rate prescribed under the Punjab State Real Estate (Regulation and Development) Rules, 2017 — that is, the highest Marginal Cost of Funds based Lending Rate (MCLR) plus 2 per cent — with effect from July 31, 2023, till the date a valid offer of possession is made after obtaining the OC/CC from the competent authority.
The complainants have been asked to clear all pending payments as per the buyer’s agreement before taking possession. The conveyance deed shall be executed thereafter in accordance with law.
The promoter has been directed to make the payment within the time stipulated under Rule 17 of the Punjab RERA Rules. In case of default, the amount will be recoverable as arrears of land revenue and the Authority may issue a Recovery Certificate.
