The Punjab Real Estate Regulatory Authority (Punjab RERA) has advised homebuyers to take possession of plots or units after builders obtain all necessary clearances from the competent authority, including Occupation or Completion Certificates.
Member Binod Kumar Singh made the observation while dismissing a homebuyer's claim for delayed-possession interest against Phenomenal Construction Private Limited and Suraksha Enclave Ipan Real Estate Private Limited. The Authority found no delay in handing over possession, relying on a conveyance deed that recorded physical possession had been delivered before the contractual deadline.
The authority observed: “It is always advice able that possession of plot/unit should be taken when the builder has all clearance from competent authority including occupation certificate/completion certificate.”
The dispute arose after Urmila Arya purchased a 100-square-yard plot in the Suraksha Enclave Township (BELLA VISTA-2) project at Derabassi, Mohali, Punjab.
Arya received a provisional allotment letter on September 6, 2019, and entered into a builder-buyer agreement on September 20, 2019, for ₹10.35 lakh, which she paid in full. Under Clause 21 of the agreement, possession was to be delivered within 24 months.
Arya alleged that the developers had failed to offer lawful possession and had compelled her to execute a conveyance deed without obtaining the mandatory Completion or Occupation Certificate.
She issued a legal notice on June 21, 2025, before approaching Punjab RERA on September 4, 2025, under Section 31 of the Real Estate (Regulation and Development) Act, 2016.
Arya sought interest on the ₹10.35 lakh paid by her until lawful possession was delivered after obtaining the requisite statutory clearances. She also sought physical and legal possession, a penalty under Section 61 of the RERA Act and ₹1.5 lakh towards litigation costs.
In their reply dated April 27, 2026, the developers contended that Clause 21 provided for possession within 24 months, with an additional six-month grace period.
They submitted that the conveyance deed was executed on June 15, 2021, before the contractual deadline. Clause 3 of the deed expressly recorded that Arya had received and accepted physical possession of the plot. The developers also maintained that the project was fully developed and equipped with essential infrastructure and basic amenities, including water supply and a sewerage system.
Arya disputed these submissions, arguing that execution of a conveyance deed did not extinguish her statutory rights. She relied on judicial decisions concerning compensation for delayed possession and agreements allegedly executed under pressure.
After hearing both sides on September 3, 2026, the Authority examined the agreement and conveyance deed.
It found that possession was due on September 20, 2021, whereas the conveyance deed had been executed on June 15, 2021. The deed recorded that physical possession had been delivered to and accepted by Arya.
The Authority observed, “Since the promoter has completed his obligation and executed deed in respect of plot in favour of the complainant and in conveyance deed it is specifically mentioned that the physical possession has been handed over. Then there no doubt about genuineness of possession.”
It concluded that there was no delay in handing over possession along with the conveyance deed. Consequently, interest under Section 18 of the RERA Act did not arise.
The authority accordingly disposed of the complaint for lack of merit. However, it granted Arya liberty to seek compensation before the competent authority for any deficiency in the developers' services.
For Complainant (Urmila Arya): Advocates Simran Singh and Mumkin Ahmed.
For Respondents (Phenomenal Construction Private Limited and Suraksha Enclave Ipan Real Estate Private Limited): Advocate Manisha Maggu.