Punjab RERA directs Omaxe to pay ₹34.81 lakh interest to New Chandigarh homebuyers

The Punjab Real Estate Regulatory Authority (RERA) has directed Omaxe Chandigarh Extension Developers Pvt. Ltd. to pay ₹ 34.81 lakh as interest to two homebuyers for delaying possession of a flat in its “The Lake” housing project at New Chandigarh. The homebuyers, represented by Mhd Sartaj Khan, booked a 3BHK apartment in the project and paid ₹ 58.60 lakh towards the total sale consideration of ₹ 72.18 lakh. The initial booking was made in August 2014. Despite paying more than 80% of the sale consideration, the homebuyers had not received possession of the apartment. They sought interest for the delay and directions to the developer to hand over possession after obtaining the required approvals. After examining the record, the authority removed the director from the array of parties and held that the complaint would continue only against the promoter company. It also rejected the objection regarding arbitration, relying on Supreme Court judgments that uphold the jurisdiction of regulatory authorities in such matters. RERA observed that the agreement required the promoter to offer possession within 42 months, along with a six-month grace period. The authority held that possession should have been offered by November 10, 2020. The authority noted that the developer had not obtained the completion certificate, partial completion certificate or occupancy certificate for the tower where the flat is located and had not handed over possession to the complainants. Holding that the promoter failed to fulfil its obligations under Section 18 of the Real Estate (Regulation and Development) Act, 2016, the authority directed Omaxe to pay interest at 10.80% on the amount deposited by the allottees. RERA calculated the interest payable up to May 31, 2026, at ₹ 34,81,119 and directed the company to pay the amount within 90 days. It further ordered the developer to pay ₹ 52,747 per month as continuing interest from June 1, 2026, until valid possession is offered. The authority also directed the developer to hand over possession after obtaining the required completion or occupancy certificates and restrained it from allotting or transferring the flat to any other person. RERA said that if the developer fails to comply within 90 days, the amount would be recoverable as arrears of land revenue through the competent authorities under Section 40(1) of the Act.