Punjab RERA Directs Omaxe Chandigarh Developers To Pay 10.80% Interest For Delayed Possession

The Punjab Real Estate Regulatory Authority (the Authority) on 2 March directed Omaxe Chandigarh Extension Developers to pay interest at the rate of 10.80% per annum to a homebuyer for the delay in handing over possession of the flat.

A Bench comprising Member Binod Kumar Singh observed:

“Respondent is further directed to pay interest under Section 18(1) of the Act of 2016 at the rate of 10.80% per annum on the amount paid by the complainant from the date of this order till the delivery of valid legal possession of the flat.”

The Homebuyer (Complainant) applied for a residential flat in the project “The Resort, Part A” developed by the Builder (Respondent) at Omaxe, New Chandigarh. On 3 January 2018, they booked a 3 BHK unit in Tower 4 with a super area of 1,477 sq. ft. and a carpet area of 974 sq. ft., along with a covered car parking space.

The Builder-Buyer Agreement was executed on 6 July 2018, and an allotment letter was issued on 9 July 2018. The total price of the unit was fixed at Rs. 54.89 lakhs. The Homebuyer obtained a home loan of Rs. 44.5 lakhs from State Bank of India and paid Rs. 27.60 lakhs, including GST, to the builder as per the demands raised under the agreement.

As per Clause 7.1 of the Builder-Buyer Agreement, the builder was required to hand over possession of the flat by December 2022. The Homebuyer alleged that the builder failed to offer possession within the stipulated time and did not pay any interest for the delay.

The Homebuyer further contended that the builder charged them based on the super area of the flat instead of the carpet area, which, according to them, was contrary to the provisions of the RERA Act, 2016 and the Punjab RERA Rules. They also claimed that the builder charged Rs. 42,760 as delayed payment interest even before the execution of the Builder-Buyer Agreement.

Aggrieved by the delay in possession and the charges levied, the Homebuyer approached the Authority, seeking interest for delayed possession, a refund of the amount charged on the basis of super area, a refund of the delayed payment interest, and other consequential reliefs.

The Authority observed that the Homebuyer had paid Rs. 27.60 lakhs towards the unit and that there was a delay of more than three years in handing over possession.

Regarding the Homebuyer's claim that they were charged based on the super area instead of the carpet area, the Authority held that the total price of the unit was fixed in the agreement and was not determined on a per square foot basis. The Authority noted that the total consideration also included the Homebuyer's proportionate share in common areas and facilities, such as lifts, corridors, electrical connections, plumbing, and other project amenities. Therefore, the Homebuyer's contention seeking a refund of the amount allegedly charged on the basis of super area was rejected.

The Authority further held that the promoter's contention regarding delays in payments by the Homebuyer was not acceptable, as the payments were made after the due date of possession.

However, while considering the promoter's plea regarding the impact of the COVID-19 pandemic, the Authority relied on the order of the Punjab Real Estate Appellate Tribunal in Hero Realty vs. Arun Premdhar Dubey and held that a period of four months should be excluded from the delay period on account of force majeure.

In view of the delay in handing over possession, the Authority held that the Homebuyer was entitled to interest at the rate of 10.80% per annum for the delayed period.