Punjab RERA Penalises Developer For 5-year Delay In Flat Possession

Shimla couple had paid ₹64 lakh for the flat in 2015, with assurance of possession by 2018; but it was not handed over even after 5 years

The Real Estate Regulatory Authority, Punjab, has directed a developer to pay interest to a Shimla-based family for an over five-year delay in handing over possession of a flat in New Chandigarh.

The complainants, Kavita Gupta and Manohar Lal Gupta, had filed a case against Omaxe New Chandigarh Developers Private Limited, Mohali.

The couple submitted that on March 17, 2015, they were allotted a residential unit, measuring 1,885 square feet, at “The Lake” project developed at Omaxe, New Chandigarh.

The basic sale price was around ₹68 lakh of which they paid around ₹64 lakh.

The possession was to be delivered on September 17, 2018. However, even after five years, the possession has not been handed over to them.

Alleging that the developer has violated various provisions of the Real Estate (Regulation and Development) Act, 2016, they filed a complaint, seeking payment of interest against the delay in handing over possession.

In their response, the developer alleged that the Act was not violated. “The complainants tried to mislead by stating that the period of handing over the possession to be 42 months, but it is 48 months with six months’ grace period,” the developer claimed, further alleging that the instalments were not paid on time.

Hearing both sides, the Real Estate Regulatory Authority, Punjab, ordered that the complainants were entitled to payment of interest from the developer for the period of delay in handing over possession.

Thus, it directed the developer to pay interest on ₹64.91 lakh at the rate of 10.85% per annum from May 9, 2019, as prescribed in Punjab State Real Estate (Regulation and Development) Rules, 2017, till a valid offer of possession is made after occupancy certificate.

Write a Comment