Royale Empire’ case: RERA Punjab pulls up builder, orders compensation

The respondents argued that the complaint was not maintainable due to a pending civil suit at Derabassi. However, the authority rejected this objection, observing that the civil case was unrelated to the issues raised before it.
On merits, RERA found the promoters in clear violation of the Agreement to Sell and provisions of the Real Estate (Regulation and Development) Act, 2016. The order emphasised that “interest for delayed possession is a statutory entitlement” and that buyers cannot be denied relief merely because a project remains incomplete.

The authority calculated delayed possession interest at ₹31,33,350 up to March 31, 2026, and further directed monthly interest of ₹18,990 from April 1, 2026, until possession is lawfully handed over. It also ordered that the amount be recoverable as land revenue under Section 40(1) of the Act, with a Recovery Certificate to be issued after 90 days.

Additionally, the order clarified that any outstanding dues between the parties at the time of possession may be mutually adjusted. It also stated that the allottee will not be liable to pay maintenance charges until the awarded amount, along with accrued interest, is fully settled — subject to exceptions involving third-party or RWA maintenance arrangements.

Advocate Mohammad Sartaj Khan said, “The ruling reinforces that delayed possession is not just a contractual breach but a statutory violation, making it clear that builders cannot retain buyers’ money without either timely delivery or lawful compensation.”