Punjab RERA Directs Omaxe to Pay ₹7.87 Lakh to Homebuyer for Possession Delay

The order was passed by a bench headed by Chairperson Rakesh Kumar Goyal which observed:

“The Respondent's failure to pay interest as per “Agreement for Sale” and further as per Section 18 of the RERD Act, 2016 constitutes violation of contractual and statutory obligations.”

The dispute relates to a 3 BHK apartment in the builder's Celestia Royal Premier Phase-3C project. Homebuyer booked the unit in August 2019 and later entered into a Builder Buyer Agreement with the developer. Under the agreement, possession was to be handed over by February 11, 2022.

According to the homebuyer she paid more than Rs. 74 lakh towards the flat under the construction Linked payment plan. Despite this possession was not delivered within the promised period. Then in August 2023, builder issued possession offer and raised a demand of Rs 9.51 lakh which was disputed by homebuyer.

Claiming that she had been waiting well beyond the agreed timeline the homebuyer approached Punjab RERA seeking possession of the flat along with interest for the delay.

Before the Authority, the builder sought to attribute the delay to alleged defaults in payment by the homebuyer. The Authority, however, was not convinced. It noted that a substantial portion of the sale consideration had already been paid and found no supporting material to show that the alleged payment delays had affected construction or contributed to the delay in handing over possession.

Authority did however grant the builder the benefit of the six-month extension that had been allowed due to the COVID-19 pandemic. On that basis, it held that possession should have been offered by August 11, 2022.

Another issue before the Authority related to an increase of 40 sq. ft. in the area of the flat. Punjab RERA held that the increase fell within the permissible limit under the Punjab RERA Rules. At the same time it clarified that the builder could recover the cost of the additional area only at the rate agreed between the parties.

Homebuyer also sought compensation up to the date of actual possession. While considering this claim Authority noted that a valid offer of possession had been issued on August 11, 2023 after the Occupancy Certificate had been obtained. It further found no material to show that the homebuyer had been compelled to sign a settlement deed before taking possession. In these circumstances Authority held that delay interest would be payable only for the period between September 1, 2022 and September 30, 2023.

Partly allowing the complaint, Punjab RERA directed the builder to pay Rs 7,87,900 as interest for delayed possession within 90 days. Authority also clarified that if the amount remains unpaid it would be recoverable as arrears of land revenue under Section 40(1) of the RERA Act.

For Complainant: Advocates Bhanu Partap Singh and Vibhuti Narania for the complainant.

For Respondent: Advocates Ashim Aggarwal, K.J. Singh and Gautam Goyal for the respondent.