Punjab RERA Orders ₹24.38 Lakh Refund To Homebuyer For Delayed Possession Of Sunny Enclave Plot

On 27 May, the Punjab Real Estate Regulatory Authority (RERA) reiterated that homebuyers cannot be compelled to remain in indefinitely delayed real estate projects and are entitled to seek refund with interest under Section 18 of the Real Estate (Regulation and Development) Act, 2016 where promoters fail to deliver possession within a reasonable time.

The Authority, comprising Member Binod Kumar Singh, directed Bajwa Developers Ltd. and others to refund Rs. 24,38,075 to Gurgaon resident Sanjeev Kumar along with interest at 10.80% per annum from the respective dates of payment until realisation. It held:

“Since the possession of plot has been delayed inordinately; therefore, as provisions of Section 18 the complainant is entitled to claim refund along with interest as per its choice in case of non-completion by agreed date.”

Sanjeev Kumar had booked a residential plot in 2012 in the “Sunny Enclave” township project at Kharar, Mohali, developed by Bajwa Developers Ltd.. He initially paid Rs. 7.30 lakh on 27 July 2012 and was allotted Plot No. 534 measuring 138.89 square yards. The total sale consideration was fixed at Rs. 24.30 lakh, with possession promised within three years of booking.

He subsequently paid Rs. 4.86 lakh on 7 April 2013 and Rs. 6.08 lakh on 1 June 2013. In 2015, the developer informed him that the project had reached its final stage and sought the remaining payment. However, it later claimed there was a “problem” with the allotted plot and proposed an alternative allotment.

Thereafter, Kumar agreed to allotment of Plot No. 500-D through a letter dated 25 July 2015 and paid further sums, including Rs. 5.56 lakh and Rs. 57,500 towards external development charges. Despite these payments, possession was not handed over.

Kumar issued letters dated 23 June 2022 and 30 July 2022 seeking registration of the re-allotted plot, followed by a legal notice dated 4 October 2022 demanding refund with interest and compensation. He then approached the Authority on 23 January 2023 under Section 31 of the Act.

During proceedings, the Authority noted that despite multiple opportunities and hearings between April 2023 and March 2026, the developer failed to file any substantive reply disputing the allegation of non-delivery of possession.

The Authority held that documentary records established payment of the entire sale consideration, while the developer failed to produce any evidence showing that possession had been handed over. It further observed that even in the absence of a formal agreement to sell, consistent assurances were given that possession would be delivered within a reasonable time.

Relying on Fortune Infrastructure v. Trevor D'Lima and Newtech Promoters and Developers Pvt. Ltd. v. State of U.P., the Authority reiterated that homebuyers cannot be forced to remain in delayed projects and are entitled to refund where possession is not delivered within a reasonable period.

Accordingly, the RERA directed Bajwa Developers Ltd. and others to refund Rs. 24,38,075 along with interest at 10.80 per cent per annum, to be paid within ninety days, failing which further action under the Act may follow.

For the complainant: Shri Ravi Kumar Nayak, Advocate

None for respondent no. 1 to 4

For the respondent no. 1 & 5: Sh Vipul Monga and Ms Rabia Devgan, Advocates