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RERA orders Rs 27.82 lakh recovery from developer for delayed possession of flat in Mohali
According to RERA records, the developer offered possession of the house in Zirakpur on October 3, 2023, but without a valid Completion/Occupancy Certificate.
The complainant refused to take possession, citing incomplete work and the absence of mandatory approvals. (Representative Image/File Photo)
In a significant ruling strengthening the rights of homebuyers, the Real Estate Regulatory Authority (RERA) has issued a recovery certificate of Rs 27,82,775 against Suksha Developers Private Limited for failing to comply with its earlier orders.
The case stems from a complaint filed by Dr Gurmeet Singh Chawla, who had booked a flat in the Sushma Valencia project in Zirakpur, Mohali district. The complainant paid Rs 66,98,804, while possession was contractually due by December 29, 2021.
According to RERA records, the developer offered possession on October 3, 2023, but without a valid Completion/Occupancy Certificate. The complainant refused to take possession, citing incomplete work and the absence of mandatory approvals.
In its order dated May 29, 2025, the Authority held that such an offer of possession is not legally valid. It observed, “If the promoter fails to deliver possession as per the agreement, the allottee is entitled to interest for every month of delay.”
RERA directed the developer to pay Rs 25,42,389 in interest at 11.10 per cent per annum on the deposited amount, excluding the four-month Covid-19 period. It also ordered that interest must continue until valid possession is handed over.
However, after non-compliance, the complainant initiated execution proceedings (Execution Application No. 52 of 2025). Subsequently, under Section 40 of the Real Estate (Regulation and Development) Act, 2016, RERA authorised recovery of the dues as arrears of land revenue.
The recovery certificate, issued on February 16, 2026, directed the deputy commissioner of Sahibzada Ajit Singh Nagar (Mohali) to recover the amount from the developer’s assets within 60 days.
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Chawla said, “This order clearly establishes that possession offered without statutory certificates is invalid, and strict action must be taken against defaulting developers.”
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