The Punjab Real Estate Regulatory Authority (RERA) has issued a directive to real estate developer Omaxe, ordering the company to pay delay interest to a couple from Gurugram for a flat in New Chandigarh. The couple had booked a residential unit in the Omaxe project in 2014, with a promised possession date of 2017. However, the developer failed to deliver the flat on time, leading to a prolonged delay of several years.
Case Background
The complainants, a married couple residing in Gurugram, had invested in a flat in Omaxe's New Chandigarh project. The agreement stipulated that possession would be handed over by December 2017. Despite multiple reminders, the developer did not complete the construction within the stipulated period. The couple subsequently approached Punjab RERA seeking relief, including compensation for the delay.
RERA's Ruling
After reviewing the case, Punjab RERA bench, chaired by the authority's chairman, held Omaxe liable for the delay. The authority noted that the developer had failed to provide a valid reason for the extended timeline. Consequently, RERA directed Omaxe to pay interest on the amount paid by the couple for the delayed period, as per the provisions of the Real Estate (Regulation and Development) Act, 2016. The interest rate is to be calculated from the agreed possession date until the actual date of possession.
Implications for Homebuyers
This order reinforces the rights of homebuyers under RERA, ensuring that developers are held accountable for project delays. The ruling serves as a reminder that buyers can seek legal recourse if builders fail to meet contractual timelines. Real estate experts highlight that such decisions bolster consumer confidence in the regulatory framework.
The couple expressed satisfaction with the verdict, stating that it vindicated their long struggle for justice. They hope that other affected buyers will also benefit from similar rulings. Omaxe has not yet commented on the order, but the company is expected to comply with the directive within the stipulated timeframe.
