Mohali-based developer fined for delay in handing over flat to buyers - Hindustan Times
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Mohali-based developer fined for delay in handing over flat to buyers

By, Chandigarh
Jun 09, 2024 07:38 AM IST

RERA directs developer to pay fine on ₹76 lakh paid by buyers; possession had to be given in 2018, but project far from completion, say complainants

The Real Estate Regulatory Authority (RERA), Punjab, has directed a Mohali-based firm to pay interest on over 76 lakh, which it charged from two plot buyers, till possession of the property is granted.

Ashok Kumar and Jasvinder Kumar of New Chandigarh, Punjab, had filed a case against M/s Omaxe Chandigarh Extension Developments Pvt Ltd, Mohali. (Getty Images)
Ashok Kumar and Jasvinder Kumar of New Chandigarh, Punjab, had filed a case against M/s Omaxe Chandigarh Extension Developments Pvt Ltd, Mohali. (Getty Images)

Ashok Kumar and Jasvinder Kumar of New Chandigarh, Punjab, had filed a case against M/s Omaxe Chandigarh Extension Developments Pvt Ltd, Mohali, alleging that they paid 5 lakh on November 1, 2014, towards booking of a residential apartment having an area of 213.68 square metres in “The Lake” project, developed by the aforementioned firm.

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“An allotment letter was issued in March 2015 and possession of the unit was to be offered within 42 months, means September 2018,” they added.

The complainants said they had already paid 76.30 lakh after taking bank loan, but had not received possession till date. “The project is far from completion. Also, the project was advertised to be developed around a big water body/lake, but the developer changed the plan and no such big water body exists,” they mentioned.

The complainants prayed that the developer be directed to hand over the possession of the unit after obtaining occupancy and completion certificate, and also to pay interest from September 21, 2018, on the amount of 76.30 lakh.

The company argued that the allegation that possession was to be delivered by September 2018 was wrongly interpreted as the period was to be computed excluding holidays, which comes to approximately 61 months and 12 days, and therefore the stipulated date of possession was May 3, 2020. “Also, this was the time when the entire country was under the Covid-19 pandemic,” it added.

The company’s counsel added that complainants had not paid the instalments on time and the respondent had to send reminders from March 2017 to June 2019, as such no relief for alleged delay in offering possession is maintainable.

Hearing both sides, RERA observed that the complainants were entitled to the payment of interest for the period of delay in handing over possession.

It directed the company to pay interest from March 22, 2019, on 76.30 lakh at the rate of 10.85% per annum as prescribed in the rules of Punjab State Real Estate (Regulation and Development) Rules, 2017, till a valid offer of possession is made after obtaining the occupancy certificate.

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