Mohali Builder Fined For Delay In Handing Flat Possession

Punjab Real Estate Regulatory Authority (RERA) has directed Omaxe New Chandigarh Developers Pvt Ltd to pay interest to a Patiala couple for delaying the possession of a flat in its “The Lake” housing project at New Chandigarh. The commission passed the order on a complaint filed by Vivek Dudeja and Anita Dudeja of Patiala, who had booked a flat in Emerald-B Tower of the project in 2019.

The complainants alleged that the developer neither obtained the occupancy certificate nor handed over possession within the promised timeline. They sought possession of the flat along with interest for the delay.

The defence contended that the delay occurred due to force majeure circumstances arising from the Covid-19 pandemic. The developer submitted that construction activities came to a standstill for several months because of lockdown restrictions, labour shortages and disruption in the supply of construction material. It also cited various consumer commission and appellate tribunal orders that granted extensions to developers on account of the pandemic.

The company further argued that the complainants had opted for a down-payment plan and had received a substantial discount. It maintained that the agreement itself provided for extension of timelines in the event of force majeure conditions.

After examining the record, RERA held that the developer had failed to deliver possession by the committed date of July 31, 2021, and that the case squarely fell within the ambit of Section 18 of the Real Estate (Regulation and Development) Act, 2016.

The authority, however, accepted that the Covid-19 pandemic constituted a force majeure event and granted the developer a four-month exclusion period while calculating the delay.

RERA also observed that an offer of possession issued by the developer in November 2025 could not be treated as a valid possession offer because there was no completion or partial completion certificate on record at that time. The authority noted that the developer obtained a partial completion certificate only on April 13, 2026.

The authority directed Omaxe to issue a fresh possession offer and pay interest at 10.80% per annum on ₹98.79 lakh from July 31, 2021, till the date of the order, excluding four months granted for force majeure. It further ordered the developer to continue paying interest at the same rate until the flat is handed over.