Punjab RERA orders Omaxe, PUDA to pay interest for delay in possession of SCO in Patiala project

As per Clause 4(i) of the allotment letter, possession was to be handed over within 30 days from completion of development work or on payment of 50% of the sale price, whichever was later. However, the authority observed that the project remained incomplete and lacked basic amenities, and that possession was allegedly “forced upon the complainant, creating uncertainty due to inter-seciton disputes between the promoters”.

Rejecting objections on limitation and non-registration under RERA, the authority held that the Act is “retroactive and remedial in nature” and that an incomplete project gives rise to a recurring cause of action. It ruled that non-registration does not take a project out of RERA’s purview.

Accordingly, RERA directed the respondents to pay interest at the rate prescribed under Rule 16 of the RERD Rules SBI’s highest MCLR plus 2% from the date of deposit till legal possession is delivered after completion of the project, holding them jointly and severally liable.

The authority noted that a commercial unit has “no real utility unless the surrounding residential pockets and basic infrastructure like roads, drainage and water supply are developed”. It also expressed concern over unplanned growth in Punjab’s urban peripheries and called for regional and national-level strategic master planning, digitisation of land records, title guarantees, single-window clearances, and mandatory insurance for real estate projects.

The secretariat of the authority has been directed to circulate a copy of the judgment to all stakeholders and competent authorities for “soul-searching”.