The Real Estate Regulatory Authority (RERA), Punjab, has imposed a penalty of Rs 34,81,119 on M/s Omaxe New Chandigarh Developers Pvt. Ltd. for failing to hand over possession of a 3BHK flat in its project “The Lake” in New Chandigarh (Mullanpur). The order, issued by RERA Chairman Rakesh Kumar Goyal, directs the builder to pay the amount as delayed-possession interest to homebuyers Sunita Verma and Brij Bala Verma, who booked the flat over a decade ago.
Background of the Complaint
The complainants had booked Flat No. TLC/CASPEAN-E/Seventh/702, a 1,920 sq ft unit, in 2014 with an initial booking amount of Rs 50,000 against a total sale consideration of Rs 72,18,480. They paid Rs 58,60,470 by July 2019, which is over 80 per cent of the total cost, but possession was never delivered.
RERA’s Findings
The Authority rejected the builder's argument that the 42-month possession timeline (plus a six-month grace period) should start from the signing of the Allotment Letter-cum-Agreement to Sale in November 2016. Instead, RERA determined that the due date for possession was October–November 2020, considering the buyers' payment history from 2014 and a Covid-related extension, as the project’s extended deadline fell during the pandemic.
RERA also dismissed Omaxe’s claim that an arbitration clause in the agreement could oust its jurisdiction, citing the Supreme Court’s ruling in Emaar MGF Land vs. Aftab Singh.
Quantum of Interest
Interest at 10.80 per cent per annum (SBI’s highest MCLR plus 2 per cent) has been awarded on the principal amount from December 1, 2020 to May 31, 2026, covering 66 months, amounting to Rs 34,81,119. From June 1, 2026, the builder must pay Rs 52,747 per month as interest until valid possession is handed over.
Directions to Builder
The Authority ordered Omaxe to pay the amount within 90 days and to offer possession of the flat within 15 days of obtaining the occupation/completion certificate. If payment is not made within the stipulated period, the amount will be recoverable as arrears of land revenue under Section 40(1) of the RERD Act read with the Punjab Land Revenue Act, 1887. The Secretary of the Authority has been directed to issue a Debt Recovery Certificate.
RERA also restrained Omaxe from reselling or transferring the unit until possession is handed over. The two women have been named as decree holders, with the company as judgment debtor for recovery purposes.
Other Observations
The director of the respondent company, Bhupendra Singh, was dropped from the proceedings, as the Authority held that the obligation under Section 18 lies against the promoter company, not an individual director. Claims regarding alleged overcharging on super area versus carpet area and a penalty under Section 61 were rejected for lack of evidence. A separate claim for litigation costs was left to be pursued before the Adjudicating Officer.
Mohammad Sartaj Khan, counsel for the complainants and Vice-President of the RERA Bar Association, Punjab, said the verdict reinforces that homebuyers cannot be made to wait indefinitely for their properties, and builders must now account for compounding monthly liability for continued delay.
