The Real Estate Regulatory Authority (RERA), Punjab, has come down heavily on M/s Omaxe New Chandigarh Developers Pvt. Ltd., directing the builder to pay Rs 34,81,119 as delayed-possession interest to two homebuyers who had booked a 3BHK flat in the company’s “The Lake” project in New Chandigarh (Mullanpur) over a decade ago but are yet to receive possession.
Allowing the complaint filed by Sunita Verma and Brij Bala Verma under Section 31 of the Real Estate (Regulation and Development) Act, 2016, RERA Chairman Rakesh Kumar Goyal held that the promoter had “failed to fulfill its obligation of delivering possession within the agreed period” and that the complainants were entitled to interest under Section 18(1) of the Act.
The complainants had booked Flat No. TLC/CASPEAN-E/Seventh/702, a 1,920 sq ft unit, in 2014 with an initial booking amount of Rs 50,000, against a total sale consideration of Rs 72,18,480. They went on to pay Rs 58,60,470 till July 2019 — over 80 per cent of the total cost — but possession was never handed over.
The Authority rejected the builder’s contention that the 42-month possession timeline (plus a six-month grace period) should run from the date the Allotment Letter-cum-Agreement to Sale was signed in November 2016.
Instead, it held that the due date for offer of possession was October–November 2020, factoring in the buyers’ payment history dating back to 2014 and a Covid-linked extension, since the project’s extended deadline itself fell within the pandemic period.
RERA also dismissed Omaxe’s argument that an arbitration clause in the agreement ousted the Authority’s jurisdiction, citing the Supreme Court’s ruling in Emaar MGF Land vs. Aftab Singh.
QUANTUM AWARDED
Interest at 10.80 per cent per annum (SBI’s highest MCLR plus 2 per cent) has been awarded on the principal amount from December 1, 2020 to May 31, 2026 — a period of 66 months — working out to Rs 34,81,119.
From June 1, 2026 onward, the builder will additionally be liable to pay Rs 52,747 per month as interest until valid possession is actually handed over.
The Authority directed Omaxe to pay this amount within 90 days and to offer possession of the flat within 15 days of obtaining the occupation/completion certificate.
Failing payment within the stipulated period, the amount will be recoverable as arrears of land revenue under Section 40(1) of the RERD Act read with the Punjab Land Revenue Act, 1887, with the Authority’s Secretary directed to issue a Debt Recovery Certificate.
The order has also restrained Omaxe from reselling or transferring the unit until possession is handed over to the complainants, and has named the two women as decree holders with the company as judgment debtor for recovery purposes.
The director of the respondent company, Bhupendra Singh, was dropped from the array of respondents during proceedings, with the Authority holding that the obligation under Section 18 lies against the promoter company and not against an individual director.
Claims relating to alleged overcharging on super area versus carpet area, and a penalty under Section 61, were rejected by the Authority for want of evidence, while a separate claim for litigation costs was left to be pursued before the Adjudicating Officer.
Mohammad Sartaj Khan, counsel for the complainants and Vice-President of the RERA Bar Association, Punjab, who shared a copy of the order, in Chandigarh on Tuesday, said the verdict reinforced that homebuyers “cannot be made to wait indefinitely for their hard-earned properties” and that builders would now have to factor in compounding monthly liability for continued delay.
