E-Paper
Mohali: RERA orders builder to pay ₹31 lakh interest to buyer
RERA passed the order in a complaint filed by Bikram Singh Bhullar, a resident of Tarn Taran district, against Omaxe Chandigarh Extension Developers, now known as Omaxe New Chandigarh Developers
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The Punjab Real Estate Regulatory Authority (RERA) has directed Omaxe Chandigarh Extension Developers to pay ₹31 lakh interest to a flat buyer for delaying possession of his unit at The Lake project in New Chandigarh. The authority also directed the buyer to pay ₹9 lakh towards the balance amount due for possession and additional area, which will be adjusted against the interest awarded to him.
RERA passed the order in a complaint filed by Bikram Singh Bhullar, a resident of Tarn Taran district, against Omaxe Chandigarh Extension Developers, now known as Omaxe New Chandigarh Developers.
The complainant was represented by his counsel advocate Mohd Sartaj Khan. Bhullar had booked a 3BHK flat, measuring 1,885 sq ft, in The Lake project at New Mullanpur. The total sale consideration was ₹55 lakh, and he had paid ₹50 lakh, including GST, to the promoter, according to the order.
The allotment letter-cum-agreement for sale was executed on July 4, 2015. Under Clause 40(a), the promoter had to offer possession within 42 months, with a six-month grace period. RERA fixed July 4, 2019, as the due date for possession.
The promoter did not hand over possession by the stipulated date. Bhullar approached RERA seeking interest for the delay and relief over charges based on the super area and an increase of 80 sq ft in the unit’s area.
The promoter handed over physical possession of the flat on May 21, 2025, after intervention by RERA.
Promoter’s plea rejected
RERA rejected the promoter’s plea that the agreement contained an arbitration clause that prevented the authority from hearing the complaint. It also rejected the plea that the promoter should receive an extension because of the Covid-19 pandemic, noting that the possession deadline had expired before the pandemic.
The authority also rejected the promoter’s argument that delays in Bhullar’s payments justified the delay in possession. It noted that the promoter had failed to establish when the construction milestones triggering the instalment payments had been achieved.
RERA held that Bhullar was entitled to interest under Section 18 of the Real Estate (Regulation and Development) Act, 2016. It calculated the interest at 11% on ₹50 lakh for 69 months, from August 1, 2019, to April 30, 2025, and fixed the amount at ₹31,51,368.
The authority also ruled that the promoter could charge for the additional 80 sq ft because the agreement was executed before RERA came into force and the unit was sold on a super-area basis. However, it directed Omaxe to charge the additional area at the original rate of ₹2,275 per sq ft instead of ₹3,690 per sq ft. It therefore allowed a charge of ₹1,82,040 for the additional area.
Bhullar also had ₹7,93,761.24 payable towards the amount due at the time of possession. RERA fixed his total liability at ₹9,75,801, including the additional-area charge.
The authority directed that the ₹9 lakh payable by Bhullar be adjusted against the ₹31 lakh interest awarded to him.
RERA directed Omaxe to make the payment within 90 days of receiving the order. If the promoter fails to pay, the authority’s secretary will issue a debt recovery certificate for ₹21 lakh and send it to the competent revenue authority for recovery as arrears of land revenue.
The authority also held that Bhullar would not be liable to pay maintenance charges to the promoter until the awarded amount, along with any accrued interest, is paid or adjusted. The exemption will not apply if maintenance has been handed over to an RWA or another third-party agency.
