Setback for Omaxe: Punjab RERA orders Rs 44.63 lakh delay interest, quashes unilateral area hike

RERA calculated the compensation for the period from October 1, 2019 to June 27, 2025, determining delay interest at Rs 44,63,919.

Citing the Supreme Court’s Newtech Promoters judgment, the authority ordered that the amount be recovered as arrears of land revenue.

Advocate Shahnawaz Khan stated that Omaxe’s unilateral increase in the flat’s super area from 1885 sq ft to 1975 sq ft and the corresponding demand calculated at Rs 3,690 per sq ft was held illegal. He said RERA has struck down this demand, noting it violates statutory provisions and previous RERA rulings.

The complainants had also alleged excess charging of Rs 30,41,532 due to inflated area calculations and an earlier possession offer issued without a valid occupancy certificate.

Omaxe’s contention that the allotment pre-dated RERA and, therefore, the complaint was not maintainable was rejected by the authority.

This development also paved the way for the majority of allotment/majority buyers agreement holders that came into existence post-Rera Act.

RERA directed that a debt recovery certificate be issued after 90 days and forwarded to the competent authority under the Punjab Land Revenue Act, 1887. The complainants have been declared “decree holders” and the developer “judgment debtor” for the purpose of recovery under the RERA Act.

The case, involving senior government officers, is being seen as a significant precedent for homebuyers across Punjab, especially those challenging unilateral area hikes and delayed possession in large housing projects.