In a major ruling concerning delayed possession of residential property, the Punjab Real Estate Regulatory Authority (RERA) has reportedly directed a developer to pay more than ₹56 lakh in interest to a homebuyer while rejecting the builder’s reliance on the Covid-19 pandemic as a justification for delay.

Punjab RERA Rejects Covid Delay Defence, Directs Developer to Pay Over ₹56 Lakh to Homebuyer.

The dispute arose from a residential unit booked in a New Chandigarh housing project. According to the report, the buyer entered into an agreement in 2015 and paid a substantial amount towards the purchase of the property. Under the terms of the agreement, possession was required to be delivered by June 2019.

Despite receiving significant payments from the purchaser, possession was allegedly not handed over within the agreed timeframe. The buyer therefore approached RERA seeking compensation for the delay and other consequential reliefs.

During the proceedings, the developer argued that the Covid-19 pandemic and related force majeure circumstances disrupted construction activities and justified extension of timelines. The company also raised certain contractual and procedural defences in support of its position.

However, RERA reportedly found that the contractual date for possession had expired several months before the onset of the pandemic. Since the promised possession date was in June 2019 and the pandemic-related restrictions commenced in 2020, the Authority held that Covid-19 could not be used to justify the earlier delay.

The Authority further noted that the project lacked necessary completion-related certifications and that no valid offer of possession had been made to the complainant. Consequently, the delay was attributed to the developer rather than external circumstances.

RERA directed payment of interest on the buyer’s deposited amount and reportedly calculated substantial arrears running into more than ₹56 lakh. The Authority also directed that interest continue until lawful possession is offered after obtaining the necessary approvals and completion certificates.

The decision underscores an important principle in real estate law: developers cannot rely upon force majeure events to excuse delays that had already occurred before such events arose. Regulatory authorities continue to scrutinize possession claims to ensure that buyers receive legally valid possession supported by requisite approvals.

For homebuyers, the ruling reinforces the protections available under the Real Estate (Regulation and Development) Act and highlights the importance of enforcing contractual timelines.

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Disclaimer: This article is based on publicly reported proceedings and is intended solely for informational and educational purposes.