Nearly 21 years after a Rohtak resident booked a plot in TDI City, Mohali, the Punjab Real Estate Regulatory Authority (RERA) directed TDI Infratech to pay ₹92 lakh to his legal heirs after holding that the cancellation of the allotment by the developer was not in accordance with law.
In its order, the authority directed the developer to pay ₹81 lakh, the amount it had offered during the proceedings based on the subsequent sale of the same plot, along with interest. After adjusting outstanding dues and interest claimed by the developer, the authority calculated the net amount payable at ₹92 lakh as of September 30, 2026. It also ordered interest of ₹72,900 per month from October 1, until payment, subject to changes in the outstanding principal. Advocate Pranay Goyal represented the complainant.
The dispute concerns plot number 1123, measuring 250 square yards in TDI City, sectors 117-119, Mohali. Dilbag Singh booked the plot on July 12, 2005, and paid ₹3 lakh as the initial amount. The total sale consideration stood at ₹20 lakh, of which the developer received ₹18 lakh.
The allottee expected possession within two years of booking, but TDI issued a possession letter only on June 1, 2015. Singh died on June 12, 2016. His legal heirs subsequently sought the approved layout plan, an occupation certificate and a legally valid possession letter, but alleged that the developer did not respond.
{{/usCountry}}The allottee expected possession within two years of booking, but TDI issued a possession letter only on June 1, 2015. Singh died on June 12, 2016. His legal heirs subsequently sought the approved layout plan, an occupation certificate and a legally valid possession letter, but alleged that the developer did not respond.
{{/usCountry}}TDI maintained that it offered possession in 2015 and that the allottee failed to clear outstanding dues despite reminders. It said it cancelled the allotment on March 16, 2023, after issuing reminders and publishing public notices.
The authority, however, held that the cancellation was not in accordance with law. It also considered the developer’s disclosure that it had re-allotted the same plot to Vishal Goswami after the cancellation. According to the complaint, the subsequent allotment involved a price of about ₹81 lakh, against the original consideration of about ₹20 lakh.
The authority had asked TDI whether it could offer an alternative plot in the same or a nearby project. The developer stated that no vacant 250-square-yard plot was available. With the original plot already allotted to a third party, the authority declined to restore the original allotment or direct TDI to hand over possession.
Instead, it accepted the developer’s voluntary offer of ₹81 lakh, with interest at 10.8% per annum from February 1, 2024. The authority calculated interest at ₹23 lakh up to September 30, 2026, taking the settlement amount to ₹1 crore. It then deducted ₹5 lakh in outstanding dues and ₹6 lakh in interest on those dues, arriving at the net payable amount of ₹92 lakh.
The authority directed TDI to make the payment within 90 days of receiving the order. It also said the amount could be recovered as arrears of land revenue if the developer failed to pay, and directed the secretary to issue a debt recovery certificate after the stipulated period.
The authority clarified that the settlement rests on the facts of this case and does not establish a precedent for other disputes. It also declined the allottee’s request for penalties against the developer and said the order did not determine the independent legal rights of the subsequent allottee.
The legal heirs must submit acceptable proof of their status as successors-in-interest within 90 days before claiming the amount. The authority said a will alone would not suffice without legally establishing the claimant’s entitlement.