🏠 Punjab RERA Orders Interest for Delay in Possession: A Big Win for Homebuyers

In a significant ruling, the Punjab Real Estate Regulatory Authority (RERA) has directed a builder to pay interest to a homebuyer for a delay of nearly 2 years in handing over possession of a residential property.


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📌 Case Background

The complainant had booked a residential unit in a project located in Mohali and made full payment as per the agreement. As per the builder-buyer agreement, possession was to be delivered by March 2019.

However, the builder delayed the possession and handed it over only in July 2021, resulting in a delay of more than two years.


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⚖️ RERA’s Key Findings

The authority held that the builder failed to adhere to the committed timeline.

The buyer had fulfilled all payment obligations on time.

The delay could not be justified, even with reasons like COVID-19, as the delay period extended beyond reasonable limits.



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💰 Compensation Ordered

The builder has been directed to pay interest at 10.80% per annum on the amount deposited by the buyer.

The interest is payable for the period of delay—from March 2019 to July 2021.

Additional claims such as GST refund were not entertained, as they fell outside RERA’s jurisdiction.



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🔍 Legal Significance

This ruling reinforces key protections under RERA:

👉 Builders are strictly bound by possession timelines
👉 Buyers are entitled to compensation for delays
👉 Excuses like project slowdown or external factors do not override contractual obligations


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🏁 Conclusion

The order strengthens the position of homebuyers and sends a clear message that delayed possession will come at a financial cost for developers. It also highlights the importance of RERA as an effective remedy for aggrieved buyers.


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