Sushma Valencia Zirakpur- Punjab Rera Complaint

RERA Orders Builder to Pay Interest for Delay in Plot Possession

In a significant decision protecting homebuyers, the Punjab Real Estate Regulatory Authority has directed a builder to pay interest to buyers for delaying the possession of plots in a housing project.

The ruling came in a complaint filed by buyers related to the Sushma Valencia project in Zirakpur, where possession was not delivered within the promised timeline.


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Background of the Case

The complainants had booked a plot in the project in 2020. According to the agreement between the parties, the builder was required to hand over possession of the plot along with necessary approvals and an occupancy certificate by 31 March 2021.

However, the buyers alleged that the possession was not delivered on time and several promised amenities were incomplete.

They also claimed that essential facilities such as:

Electricity connection

Adequate water supply

Swimming pool

Clubhouse

Gym

Park and other amenities


were either incomplete or not available when possession was offered.


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Builder’s Defence

The developer argued that the delay occurred due to the COVID-19 pandemic, which caused disruptions in construction activities and regulatory processes. The builder stated that the possession was ultimately handed over on 15 September 2021.

The builder also contended that the pandemic had been treated as a force majeure event by several authorities, which justified extensions in project timelines.


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Findings of RERA

After examining the case, the Authority observed that:

As per the agreement, possession should have been delivered by 31 March 2021.

The actual possession was offered on 15 September 2021, resulting in a delay.


Even though some delay could be attributed to the COVID-19 pandemic, the authority held that buyers were still entitled to interest for the delayed period.


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Relief Granted to Buyers

RERA partially allowed the complaint and directed the builder to:

Pay interest to the buyers for the delayed possession period.


However, the authority did not accept certain other claims of the buyers, including demands related to refund of maintenance charges and some facility-related grievances.


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Important Observations by RERA

During the proceedings, the authority noted that the buyers had already taken possession of the plot and were residing there. Therefore, they could not refuse to pay maintenance charges for services being used.

The authority also stated that ideally buyers should take possession only after the developer has obtained all regulatory approvals and the occupancy certificate.


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Significance of the Decision

This decision reinforces the principle under the Real Estate (Regulation and Development) Act 2016 that developers must adhere to agreed possession timelines.

Even in situations involving external disruptions such as the COVID-19 pandemic, homebuyers may still be entitled to compensation for delays.