The real estate sector in Mohali and Panchkula has seen a rapid growth over the past decade, yet housing project delays and lack of accountability by private builders continues to cause losses and mental anguish for homebuyers. This despite agencies, such as the Greater Mohali Area Development Authority (GMADA) and the Haryana Shehri Vikas Pradhikaran (HSVP), mandated to safeguard consumer interest, ensure transparency and regulate builders.
The Real Estate (Regulation and Development) Act (RERA) is supposed to ensure timely delivery and clear timelines, but builders ignore the rules. Despite attempts at standardisation, many builder-buyer agreements still contain biased clauses that impose heavy penalties on buyers for delayed payments, while offering minimal compensation for project delays by the builder.
A recent case in point is that of Gupta Builders and Promoters (GBP) Group that fled the country in 2022, leaving over 2,500 investors in the lurch, while the Punjab Real Estate Regulatory Authority (RERA) failed to act.
The realty firm had 18 ongoing projects in Mohali. Among them, Camelia, offering both residential and commercial units, in Kharar, and GBP Centrum (commercial) in Zirakpur has been under construction since 2016, with not a single allottee being given possession.
The allottees later met the then RERA chief, who assured them that the builder’s registration would be revoked under Section 7 of the RERA Act and the project handed over to the allottees. However, even after three years, no action has been taken by the RERA.
{{/usCountry}}The allottees later met the then RERA chief, who assured them that the builder’s registration would be revoked under Section 7 of the RERA Act and the project handed over to the allottees. However, even after three years, no action has been taken by the RERA.
{{/usCountry}}Meanwhile, the Enforcement Directorate attached several properties of the GBP, but the allottees remain high and dry.When contacted, Punjab RERA chief Rakesh Kumar Goyal declined comment.
However Manav Malik, the HSVP executive officer, says, “We are trying our level best to bring down the pendency and sort out the issues of the public.”
Mandate vs reality
According to their charters, GMADA and HSVP are supposed to approve projects only after due diligence, monitor ongoing developments for compliance with norms, address complaints from residents within 30-60 days, and penalise errant builders for delays and violations. Yet, the ground reality tells a different story.
Ashu Kumar, the president of the Home Buyers and Investors Welfare Association of GBP, says the political-builder lobby often exerts pressure to stall punitive action. Staff shortage adds to delay in inspections and complaint resolution, while bureaucratic hurdles and complex complaint processes discourage residents from highlighting grievances.
GMADA receives 120-150 complaints every month, with more than 500 cases pending as of June 2025. Most cases are related to delayed possession, poor infrastructure, and unauthorised construction.
Punjab RERA has nearly 1,000 complaints pending, 70% (700) of which are from Mohali district alone.
The HSVP receives 80-100 complaints every month with over 300 cases still unresolved. The complaints primarily are concerned with missing amenities and property title disputes.
As a result, RERA, which was set up to protect buyers, is increasingly being seen as ineffective. Its orders often go unenforced, penalties remain nominal, and hearing delays test the patience of homebuyers.
Shalinder Anand, a former president of the Mohali Property Consultants Association, says, “Both builders and regulatory agencies are responsible. Builders exploit regulatory gaps and delay projects, while agencies are slow to act. Ultimately, it’s the residents who suffer.”
Building on rare success
In January this year, the State Consumer Disputes Redressal Commission ordered the attachment of the property of TDI City, a real estate project in Sectors 110 and 111, for failing to either deliver possession of flats or refund the money to the allottees. The commission directed the deputy commissioner (DC) to attach the entire project in these sectors. It also ordered the builder to pay around ₹21.5 lakh, following which the possessions were given.
But such cases remain exceptions, requiring strong collective action. Residents struggle to hold builders accountable due to lack of awareness about their rights and complaint mechanisms, high legal costs and lengthy court proceedings, and weak enforcement even after favourable rulings.
Experts recommend strengthening RERA’s enforcement powers, digitising complaint systems, and mandating public disclosure of monthly complaint data. Resident groups should be urged to stay organised, use RTI, and engage the media.
M Shahnawaz Khan, the director of a RERA law firm, says, “Allottees must verify builder credentials with the competent authority before buying and understand where to file complaints in case of discrepancies.”
Safeguards exist on paper
Section 12 of the RERA Act, 2016, makes promoters accountable for delivering services as advertised in official brochures. Guidelines also exist for possession handover, maintenance responsibilities until the RWA takeover, and a five-year defect liability period.
A senior GMADA officer admits, “While accountability systems exist on paper, enforcement remains inadequate. Both the authorities and homebuyers need to be more proactive in ensuring real estate accountability in Mohali.”
Even after repeated attempts, Parneet Sachdeva, chairperson of the Haryana Real Estate Regulatory Authority (HRERA) at Panchkula did not respond to the calls and messages.