Mere OC Application Not Project Completion; No 'Zero Period' For Delay In Possession: Haryana REAT

The Haryana Real Estate Appellate Tribunal (HREAT) has recently held that mere application for an Occupation Certificate does not amount to completion of a project and that time taken by authorities to process such approval cannot be automatically treated as a “zero period” enabling developers to escape liability.

Upholding a refund of Rs 79,31,700 payable with interest by Landmark Apartments Pvt. Ltd. to homebuyers Hari Ram and Nisha Gupta, the coram of Chairman Justice Rajan Gupta and Technical Member Dinesh Singh Chauhan dismissed the developer's appeal against the order of the Haryana Real Estate Regulatory Authority, Panchkula.

“The plea of the appellant-promoter that it is entitled for 'zero period', as it applied for grant of Occupation Certificate to DTCP on 25.05.2017, which has not been granted, is misplaced. Mere application for grant of Occupation Certificate does not constitute completion of the project. The initial stage of completion of project would be when Occupation Certificate is granted which is not the situation in the instant case. The time taken by the authorities to process an Occupation Certificate is not automatically considered a 'zero period' for which the promoter can escape its liability to pay interest to allottee(s),” the Tribunal observed.

The dispute arose from a residential project, “Kunjeans Height”, in Faridabad, where the developer allotted a flat to the respondents under a Flat Buyer's Agreement dated August 4, 2012.

The total consideration for the unit was Rs 42,00,000, out of which Rs 38,91,920 was paid by the allottees by July 24, 2012.

The agreement set August 4, 2014 as the deadline for possession. The flat was not delivered. In 2019, the homebuyers moved the Authority seeking a refund with interest.

On August 12, 2022, the Authority ordered a refund of the amounts paid with 9.80% interest, taking the total to Rs 79,31,700.

Before the Tribunal, the developer relied on its May 25, 2017 application for an Occupation Certificate, arguing that the period thereafter should be treated as a “zero period”.

The tribunal rejected this. It noted that the Occupation Certificate had not been granted and reiterated that completion arises only upon its issuance.

The appeal was dismissed on February 17, 2026. The pre-deposit, along with accrued interest, is to be sent to the Authority for disbursal to the allottees, subject to tax liability.

For Appellant (Landmark Apartments Pvt. Ltd.): Advocates Yashvir Singh Balhara, Venkat Rao.

For Respondents (Hari Ram and Nisha Gupta): Advocate Neeraj Goel.