Builder Ordered to Refund ₹26 Lakh for 12-Year Delay in Delivering Flat: Punjab RERA

In a significant ruling protecting the rights of homebuyers, the Punjab Real Estate Regulatory Authority has directed a Zirakpur-based builder to refund ₹26.10 lakh along with interest to two buyers after failing to deliver possession of a flat for more than 12 years.



The order highlights the strict obligations imposed on developers under the Real Estate (Regulation and Development) Act 2016, which aims to safeguard buyers from delayed real estate projects.


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Background of the Case

The complaint was filed by Bengaluru residents who had booked a residential flat in the Royale Empire project in Zirakpur in March 2011. The buyers initially paid ₹3 lakh as a booking amount and later made multiple payments, bringing the total payment to ₹26.10 lakh against the flat’s cost of ₹35 lakh.

To finance the purchase, the buyers also obtained a housing loan of approximately ₹18.88 lakh from HDFC Bank.

According to the buyer’s agreement, the developer had promised to deliver possession within 18 to 21 months, meaning the flat should have been handed over by September 2012.


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Delay of More Than a Decade

Despite repeated requests from the buyers, the project remained incomplete for several years. In 2020, the builder attempted to resolve the matter by offering an alternative flat in another block under a compromise arrangement.

However, even after the change in allotment, the construction remained unfinished and the buyers were never given physical possession of the property.


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Proceedings Before RERA

The homebuyers approached Punjab RERA seeking a refund of the amount paid along with interest. The developer failed to appear before the authority despite receiving notices sent through post, email, and official representatives.

Due to the absence of any response from the builder, the authority proceeded ex parte and decided the matter based on the documents submitted by the complainants.


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RERA’s Findings

Punjab RERA observed that the delay of over a decade clearly violated the terms of the buyer’s agreement as well as the provisions of the Real Estate (Regulation and Development) Act, 2016.

The authority noted that under Section 18 of the RERA Act, a homebuyer has the right to withdraw from a project and seek a refund with interest if the promoter fails to deliver possession within the promised timeline.


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Final Order

The authority directed the builder to:

Refund ₹26.10 lakh to the homebuyers

Pay interest at 10.80% per annum from January 19, 2020 until the date of payment

Comply with the order within 90 days and submit a compliance report



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Importance of the Decision

This ruling reinforces the protection granted to homebuyers under RERA and sends a strong message to developers that prolonged delays in delivering possession will attract strict financial consequences.

For buyers facing similar delays, the case serves as a reminder that RERA provides an effective legal remedy to recover invested money along with interest.

Punjab RERA lawyers Zirakpur