RERA directs Omaxe Chandigarh Extension Developers to hand over flat worth ₹88.83 lakh, pay interest for over 5-year delay

The builder was directed to comply with the order within 90 days of the RERA decision (by July 27, 2026). If not complied, recovery proceedings may be initiated as arrears of land revenue.

Punjab RERA found the promoter failed to deliver possession within the agreed timeline and partly allowed the complaint. It directed the builder to hand over possession after obtaining occupancy and completion certificates, and to pay interest on ₹88.83 lakh at SBI's highest marginal cost of lending rate plus 2% from October 30, 2018 until possession. The complainants had paid over ₹75 lakh (more than 90% of the total cost) and had fulfilled their obligations. The authority rejected the builder’s argument that delays were caused by payment defaults and force majeure including COVID-19 (delays predated the pandemic). It denied refunds of charges based on super area since the agreement was executed before RERA came into force, and held that interest paid by the builder under a subvention scheme cannot be claimed again as it would amount to a double benefit.

As per the agreement, possession was to be handed over by October 30, 2018. The builder neither completed the project nor offered possession by this date.

The complainant booked a residential unit in Omaxe Chandigarh Extension Developers Private Limited's The Lake project in October 2015 for ₹88.83 lakh.