NCDRC Directs GMADA To Reassess Purab Premium Apartments Completion Certificates, Issue Fresh Certificates Within 30 Days

The Commission held that the Chief Administrator, GMADA, must critically examine the technical reports, satisfy himself that all promised works have been completed, and record the actual date of completion.

The order was reserved on September 10, 2026, and pronounced on October 8, 2026, in Execution Applications No. 124 of 2024 and 140 of 2024.

Background

In its May 4, 2023 judgment in Consumer Complaints No. 1278 of 2016 and 1634 of 2018, the Commission held that GMADA, acting as both developer and competent authority, had issued the June 2016 allotment letters without a valid Occupation/Completion Certificate. It directed GMADA to obtain one within 45 days.

Delay compensation at 6% simple interest would run only up to June 2016 if the certificate confirmed completion as of then, and up to a later date if it showed later completion. A clarificatory order of November 7, 2023 applied the same condition to maintenance charges.

On October 18, 2024, GMADA issued two Completion Certificates: Memo No. 1652 for 19 towers and Memo No. 1654 for 8 towers. The Allottees Association challenged them in execution proceedings. The Residents Welfare Association (RWA) filed MA No. 512/2025 seeking modification of the November 7, 2023 order and MA No. 514/2025 seeking impleadment.

Contentions Of The Parties

The Allottees Association argued that the certificates were identical to the July 5, 2018 certificate, which the Commission had expressly rejected in 2023. It said they were issued after an inordinate delay, were signed by the Chief Administrator alone though the 2022 notification prescribes a committee, and lacked a valid Fire NOC and environmental clearances. It contended that parking, fire-safety systems and common facilities remained incomplete.

GMADA contended that the certificates were issued through a lawful multi-disciplinary departmental process. It argued that the 2014 notification applied because completion took place in 2016-17, that the 2022 notification was not retrospective, and that the Commission had required certification as on the date of allotment, not a fresh inspection.

The RWA sought exclusive collection and management of maintenance, a restraint on the Allottees Association from collecting it, and payment by GMADA of maintenance for its unsold inventory.

Commission's Observations

The Commission observed that the Chief Administrator had not adequately examined the technical reports and completion status before issuing the certificates. The certificates were stated to be issued "administratively purely on the basis of report of Technical Wing", and Memo No. 1654 gave no specific completion date. Both broadly reiterated the 2018 certificate, except for the Chief Administrator's signature, and did not indicate whether Fire NOC, environmental clearance and other statutory clearances were in place.

The bench acknowledged that the Chief Administrator must depend on technical officers' reports, but held that he must examine them critically, satisfy himself that all envisaged works are complete, and be responsible for that conclusion. Whether works are complete, and from when, is a question of fact requiring physical verification/inspection by GMADA's technical officers. A Commission sitting in execution is not the appropriate forum to undertake that exercise in the first instance.

If completion is certified as prior to October 7, 2022, the 2014 notification applies and the Chief Administrator alone is the competent authority. If certified after that date, the 2022 notification applies, under which a committee chaired by the Chief Administrator is the competent authority.

On maintenance, it noted that the Allottees Association had admitted on August 3, 2026 that, once a valid certificate issues, allottees must pay maintenance to the RWA. Relying on Section 17A of the Punjab Apartment and Property Regulation Act, 1995, it held that GMADA's maintenance responsibility was only for an initial period, until an association is formed, after which it devolves on the association.

Decision

The Commission held that the two certificates were not in full compliance with the 2023 judgment. It directed the Chief Administrator to reconsider all technical reports and records and reach a definite finding on whether all promised works, in individual units and common areas, are complete. If so, he must record the date on which the last work was completed in the certificate. He may seek fresh reports from his officers, and should not issue fresh certificates until he is satisfied that all works are complete.

The fresh certificates must be issued within 30 days of receipt of a certified copy of the order, supplied to the Allottees Association, RWA office-bearers and other concerned authorities, and put on GMADA's website. The Chief Administrator must take due note of all objections raised by the decree holders. Delay compensation remains payable by GMADA until the completion date certified in the fresh certificates.

Maintenance Directions

For the period maintenance was with GMADA, charges are payable to GMADA only on or after the later of the date of physical possession or the completion date certified in the fresh certificates.

As a general rule, maintenance is payable to the RWA from the latest of three dates: the date it actually undertakes maintenance, the date of physical possession by an allottee, or the date of completion certified by the Chief Administrator.

By way of exception, where the RWA had actually maintained the project before the certified completion date, and allottees have taken physical possession and are enjoying its services, the Commission left the parties to resolve the issue amicably. It said it expected such allottees to pay the RWA from the date the RWA began maintenance, notwithstanding that the Chief Administrator has not yet issued a certificate or has certified a later completion date.

For unallotted units, GMADA must pay maintenance to the RWA from the date the RWA actually began maintenance.

Advocates Appeared:

For the Allottees Association: Mr. Sahil Sethi, Ms. Arushi Man and Mr. Vikash Kumar, Advocates.

For GMADA: Mr. Shubham Bhalla, Ms. Ragini Sharma and Mr. Chirag Sharma, Advocates.

For the RWA: Mr. Anand Prakash (VC) and Mr. Gurmeet Singh (VC), Advocates.