MOHALI: In a landmark decision, the Punjab Real Estate Regulatory Authority (RERA) has mandated a real estate promoter to pay approximately Rs 25 lakh in delay interest to homebuyers. The ruling states that project timelines should commence from the initial booking date, not from the date the sale agreement is executed.
The complainants, who are faculty members at Punjab Engineering College, Sector 12, reported delays in receiving possession of their property. The case was represented by advocate M Shahnawaz Khan.
In a crucial determination, RERA concluded that, since the initial booking occurred in 2018, the promoter could not sidestep responsibility by postponing the execution of the agreement, which was signed in December 2022 with a possession date set for July 31, 2023.
Citing Supreme Court precedents, RERA affirmed that the acceptable duration for possession delivery is limited to three years from the date of booking or advance payment, regardless of the timing of the formal agreement.
The authority calculated the delay interest owed to the complainants at roughly Rs 25 lakh as of the order date.
Additionally, it rejected the builder’s request for an extension due to Covid-19, arguing that force majeure cannot be exploited as a blanket defense when the delays are the developer’s fault.
The complainants’ counsel articulated that this ruling strengthens the notion that homebuyers’ rights are anchored in the date of booking and payment, not merely tied to the execution of agreements.
