Punjab RERA Orders Omaxe Chandigarh Extension To Pay Interest To Homebuyer For Delayed Possession

Punjab Real Estate Regulatory Authority (Authority) bench consisting of Binod Kumar Singh (Member), directed M/s Omaxe Chandigarh Extension Developments Pvt. Ltd. Which is a subsidiary of Real Estate company Omaxe Ltd. to pay interest to homebuyer for the delay in handing over possession of the flat. Background Facts Homebuyer (Complainant) was allotted a flat in the builder's (Respondent) project named The Lake located at OMAXE New Chandigarh. Further, Buyer's Agreement was executed between homebuyer and builder on May 18, 2019 for a total sale price of Rs. 76,41,416/- excluding GST. The homebuyer paid Rs. 71,80,260/- to builder, which is more than 95% of the total cost. The remaining amount was to be paid at the time of possession. According to Clause 7 (7.1) of the Buyer's Agreement, possession of the flat was to be delivered by July 31, 2021. However, the builder has not offered possession to date and the project is far from completion. Homebuyer contended that the builder has not paid any interest for the delay in handing over possession. Also Despite repeated visits and contacts by homebuyer, possession of the flat has not been handed over. Therefore, being aggrieved, homebuyer filed complaint before authority seeking interest for the delay in handing over possession after obtaining the Occupancy Certificate from the Competent Authority. Observation and Direction by Authority The authority observed that builder has not delivered possession of flat to homebuyer to date. Despite homebuyer having paid a substantial portion of consideration there has been a long wait for possession without any commitment from the builder. The authority held that it would be unfair to the homebuyer to wait indefinitely for the relief of interest, especially since the timeline for handing over possession remains unknown. The authority held that condition of homebuyer attracts the proviso to Section 18(1) of the Real Estate (Regulation and Development) Act, 2016 which stipulates that where homebuyer does not intend to withdraw from project he shall be paid by builder interest for every month of delay till the handing over of the possession. Therefore, Authority directed builder to pay interest on amount of Rs. 71,80,260/- at the rate of 11.10% per annum until builder makes valid offer of possession to homebuyer after obtaining occupancy certificate. Case – Babita Katoch & anr Versus M/s Omaxe Chandigarh Extension Developments Pvt. Ltd. Citation – RERA/GC No.0280 of 2023 Date of order - 23.10.2024 Click Here To Read/Download The Order

Punjab RERA Orders Omaxe Chandigarh Extension To Pay Interest To Homebuyer For Delayed Possession

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Punjab RERA Orders Omaxe Chandigarh Extension To Pay Interest To Homebuyer For Delayed Possession

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