Delay Of More Than 8 Years In Providing Possession Of Land, Punjab RERA Orders Interest To Complainant

Punjab Real Estate Regulatory Authority (Authority) bench, consisting of Malwinder Singh Jaggi (Member), has directed Altus Space Builders Pvt. Limited, the builder to pay interest to the complainant for the 8-year delay in handing over possession of the plot. Background Facts On 30.01.2013, the Complainant booked a plot in the builder's (Respondent) residential project named Muirwood Ecocity by making a payment of Rs. 6,18,750. The agreement for the sale of the plot was executed on 29.01.2013, as per which the total cost of the plot was Rs. 30,33,025. However, the agreement did not mention the possession date. Despite paying Rs. 18,56,750 out of the total cost to the builder, the complainant faced a delay of several years in receiving possession. Aggrieved by the delay, the complainant filed complaint before the authority seeking possession and interest for the delay. Observation and Direction by Authority In order to determine the possession date, the authority referred to the case of Fortune Infrastructure and Anr. vs Trevor Dlima and others, where the Supreme Court held that a builder should be allowed a reasonable period of time to deliver possession. In this case, the Supreme Court considered a three-year time period as reasonable for possession delivery. Therefore, the authority held that the possession date of the plot would be considered as three years from the date of execution of the Agreement to Sell (29.01.2013). Therefore, according to the agreement, the date of delivery of possession of the plot will be 28.01.2016. The authority observed that there has been a delay of more than 8 years in handing over possession of the plot by the builder, during which time the builder used the amount of Rs. 18,56,750 paid by the complainant. Therefore, the builder is liable to pay interest to the complainant for the delayed possession. Consequently, the authority directed the builder to hand over possession and pay interest at the rate of 10.95% per annum from 28.01.2016 until the date the builder actually hands over possession of the plot. Case – Karishma Singhal Versus M/S Altus Space Builders Pvt. Limited Citation - GC No.0157 of 2023 Click Here To Read/Download Order

Delay Of More Than 8 Years In Providing Possession Of Land, Punjab RERA Orders Interest To Complainant

Aryan Raj

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