Punjab RERA orders Omaxe to pay Rs 1.27 crore interest to homebuyer over delayed possession

The complaint was filed by Harnawab Sandhu, a resident of Shivalik Vihar, Nayagaon, against Omaxe Chandigarh Extension Developers Pvt Ltd and PNB Housing Finance Ltd.

According to the complaint, Sandhu had booked a 4BHK penthouse on the 24th floor of Omaxe’s “The Lake” project in 2015 for Rs 1.93 crore. Under the buyer’s agreement, possession was scheduled to be handed over by February 11, 2019, but more than six years later, legal possession is yet to be offered.

Records show that the buyer has already paid Rs 1,66,76,029 towards the property.

Speaking to The Indian Express, advocate M Shahnawaz Khan, counsel for the complainant, said that under a third-party subvention scheme, builders usually pay the buyer’s EMI or interest while paying compensation. In most such cases, courts adjust or set off the interest already paid by the builder while calculating compensation, significantly reducing the amount payable to the buyer.

“However, in this case, the court took a different view and held that the tripartite agreement and subvention scheme were not part of the builder-buyer agreement and therefore could not be considered while calculating compensation,” Khan said.

“I argued that project delay was a separate issue, while the subvention scheme was introduced by the builder to make the property more affordable for buyers. The court accepted this argument,” he added.

According to Khan, had the argument not been accepted, the buyer would have received only around Rs 15-16 lakh. “Instead, the buyer has now secured relief of nearly Rs 1.27 crore. Since the tower is yet to receive its Occupation Certificate (OC) and Completion Certificate (CC), the compensation will continue to increase by nearly Rs 1.5 lakh every month,” he said.

Calling it a landmark ruling, Khan said the judgment significantly strengthens homebuyer rights and consumer protection in the real estate sector. He added that the order also makes it clear that builders cannot indefinitely cite the Covid-19 pandemic as a reason for project delays.

The RERA has directed the developer to clear the pending interest amount within 90 days, warning that non-compliance could invite separate proceedings under Section 63 of the RERA Act.

However, the authority did not grant relief on the buyer’s claims related to super area charges and issues arising from the tripartite agreement. It also directed the developer to offer legally valid possession after obtaining the completion certificate from the competent authority.