Homebuyer Who Stayed In Delayed Real Estate Project Can Only Get Interest, Not Compensation: Punjab RERA
The Punjab Real Estate Regulatory Authority (RERA) recently held that a homebuyer who chooses to remain in a delayed housing project can only receive statutory interest for the period of delay and cannot seek compensation, rent or litigation expenses in addition. The Authority dismissed a complaint filed by homebuyer Vandana Negi seeking further relief against the residential project...
The Punjab Real Estate Regulatory Authority (RERA) recently held that a homebuyer who chooses to remain in a delayed housing project can only receive statutory interest for the period of delay and cannot seek compensation, rent or litigation expenses in addition.
The Authority dismissed a complaint filed by homebuyer Vandana Negi seeking further relief against the residential project developed by Address Infrastructures Private Limited in Mohali, after finding that she had already availed the statutory interest remedy and had elected not to withdraw from the project.
Adjudicating Officer Rajinder Singh Rai decided the matter and relied on the wording of Section 18 of the Real Estate Regulation and Development Act, 2016. He observed that the provision "makes it crystal clear that allottee/complainant can only seek compensation, if he/she withdraws from the project. Otherwise, if he/she does not intend to withdraw from the project, he/she shall be paid only interest for every month of delay, till handing over of the possession, at such rate as may be prescribed. This remedy has already been availed by the complainant."
According to the complaint, Negi had entered into an Agreement for Sale on February 15, 2023 for an apartment in the Address Infrastructures project. Possession was promised for December 2023 but was not delivered. She alleged that the developer misled her by claiming it had secured or was securing a RERA extension and then stopped responding. She sought Rs 40 thousand per month towards rent and harassment and Rs 1 lakh towards litigation expenses, even though she had already been awarded interest for the delay in an earlier order dated August 14, 2025.
During the proceedings, counsel for the complainant argued that the delay amounted to a breach of contract that entitled her to compensation and costs. The builder of the project objected to the maintainability of the claim and submitted that Negi had already obtained the only remedy available under Section 18 because she chose to continue with the project rather than withdraw from it.
Relying on Supreme Court's ruling in Newtech Promoters and Developers Private Limited v State of Uttar Pradesh (2021) it reiterated that compensation is a distinct remedy available only when an allottee exits the project. It concluded that Negi remained bound by the 2023 agreement and had already chosen and received the statutory remedy of interest, and therefore no further claim was permissible.
Case Title: Vandana Negi v. Address Infrastructures Pvt. Ltd. & Ankit Sidana
Complaint Number: RERA/AdC/0055 of 2024
For Complainant: Sanjay Singh;
For Respondents: Advocate Mohammad Sartaj Khan