RERA Orders Omaxe to Compensate Homebuyers for Delayed Apartment Possession
Chandigarh: RERA tells realtor to pay interest for delay in flat possession
Hindustan Times
Image: Hindustan Times
The Punjab Real Estate Regulatory Authority (RERA) has mandated Omaxe New Chandigarh Developers Pvt Ltd to pay interest to homebuyers Naresh and Anju Garg due to a delay in delivering their apartment in New Chandigarh. The developer failed to meet the July 31, 2023 deadline despite the buyers having paid over 90% of the cost.
- 01The Punjab RERA directed Omaxe to pay interest for delayed possession of an apartment in The Lake project.
- 02Homebuyers Naresh and Anju Garg paid more than 90% of the sale price but did not receive possession by the promised date.
- 03The developer attributed the delay to external factors, including the Covid-19 pandemic and regulatory approval issues.
- 04RERA found no valid timeline for completion and ruled that the developer did not fulfill its obligations under the Real Estate (Regulation and Development) Act, 2016.
- 05Interest will be calculated at the highest marginal cost of lending rate (MCLR) plus 2% from July 31, 2023, until a valid offer of possession is made.
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The Punjab Real Estate Regulatory Authority (RERA) has ordered Omaxe New Chandigarh Developers Pvt Ltd to compensate homebuyers Naresh Garg and Anju Garg due to significant delays in the possession of their apartment in the “Caspean E” tower of The Lake project in New Chandigarh. RERA Member-II Arunvir Vashista stated that the developer failed to deliver the flat by the agreed deadline of July 31, 2023, despite the Garg family paying over 90% of the sale price. The couple approached RERA seeking possession and interest for the delay, highlighting that the project was incomplete and lacked an occupation certificate (OC). Omaxe argued that the delays were due to uncontrollable circumstances, including the Covid-19 pandemic. However, RERA found that nearly three years had passed since the promised date without any valid timeline for completion. The authority ruled in favor of the complainants, citing Section 18 of the Real Estate (Regulation and Development) Act, 2016, which entitles buyers to interest for delayed possession. Omaxe is required to pay interest at a rate defined by the Punjab RERA Rules, 2017, from the deadline until a valid offer of possession is made.
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The ruling emphasizes the rights of homebuyers in Chandigarh, potentially influencing future real estate transactions.
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