The Punjab Real Estate Regulatory Authority (RERA) has directed Omaxe Chandigarh Extension Developers Pvt Ltd to hand over the possession of a flat in its New Chandigarh project to two Moga buyers. It also directed the firm to pay 10.80% interest under Section 18(1) of the RERA Act, amounting to approximately ₹30 lakh, on the ₹68 lakh deposited by the petitioners, holding that the developer could not justify the prolonged delay beyond limited Covid relief.
The RERA partly allowed the complaint and ordered the developer to issue an offer of flat possession after obtaining the completion certificate from the competent authority.
The complainants, represented by advocate Prateek Garg, said they had booked two flats in Omaxe’s “The Lake” project in 2014 and were later allotted a larger 4,850 sq ft flat under an agreement executed on September 14, 2020. The agreement fixed July 31, 2021 as the possession date, but the unit was not handed over.
The defence argued that the delay was caused by the Covid-19 pandemic and was therefore protected under the force majeure clause. The builder also claimed the complainants had defaulted in timely payments.
RERA, however, held that the promoter had failed to complete the project and also to offer possession in accordance with the agreement. Referring to an appellate tribunal ruling, the authority said the developer could get only four months’ benefit on account of Covid-related force majeure, adding that the remaining delay stood admitted and could not be justified.
The authority further ordered that interest at 10.80% would continue from the date of the order until actual possession is handed over or two months after the completion certificate is obtained, whichever is earlier.
{{/usCountry}}The authority further ordered that interest at 10.80% would continue from the date of the order until actual possession is handed over or two months after the completion certificate is obtained, whichever is earlier.
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