RERA Punjab Orders Omaxe to Pay ₹53.65 Lakh to Homebuyers for Delay in Possession

• RERA orders ₹53.65 lakh compensation for delayed possession

• Buyers had paid over 90% of the flat cost

• Authority says Covid cannot be used indefinitely as a delay reason

Mohali: In a major relief for homebuyers, the Punjab Real Estate Regulatory Authority (RERA) has ordered Omaxe Chandigarh Extension Developers to pay around ₹53.65 lakh as compensation to two buyers due to a significant delay in handing over a residential unit.

The order relates to a 3BHK apartment in “The Lake” project located in New Chandigarh, Mohali, where possession was delayed by more than five years beyond the agreed timeline.

The complaint was filed by Reena Thakur and Sujit Thakur from Andheri East, Mumbai, who had booked a 3BHK apartment on the 12th floor of Tower Caspean-B in the project.

According to the allotment-cum-buyer agreement signed on July 9, 2015, the total cost of the unit was ₹82.11 lakh. The buyers had already paid ₹76.05 lakh, which is more than 90% of the total price.

As per the agreement terms, the developer was required to hand over possession within 42 months, setting the expected delivery date as January 8, 2019. However, the project failed to meet the deadline, leaving the buyers waiting for several years.

After reviewing the case, Punjab RERA directed the developer to compensate the buyers by paying interest on the deposited amount at the highest MCLR rate plus 2%.

Based on the calculation, the compensation currently stands at around ₹53.65 lakh.

The authority also ruled that the compensation will continue to increase at ₹62,383 per month until the developer makes a valid offer of possession. This offer must come after obtaining the Occupation Certificate or Completion Certificate from the competent authority.

During the proceedings, the authority made it clear that developers cannot indefinitely cite the Covid-19 pandemic as a reason for delayed possession.

RERA emphasized that while Covid may have caused temporary disruptions, it cannot justify long-term project delays when buyers have already paid most of the property price.

Punjab RERA also warned the developer that failure to comply with the order may result in further legal action. If the compensation is not paid, the authority may initiate separate proceedings under Section 63 of the RERA Act for non-compliance.

The decision highlights how RERA authorities continue to protect homebuyers against delayed projects. Buyers facing similar delays can file complaints under Section 31 of the RERA Act, which allows allottees to seek compensation or legal relief.

The ruling also sends a strong message to developers that project timelines and buyer agreements must be respected, especially when substantial payments have already been collected.