Punjab RERA orders Rs 25L payout for delayed possession, sets key precedent

Mohali: In a significant ruling, the Punjab Real Estate Regulatory Authority (RERA) has directed a real estate promoter to pay around Rs 25 lakh as delay interest to homebuyers, holding that project timelines must be counted from the initial booking date rather than the execution of the sale agreement.The complainants — faculty members of Punjab Engineering College, Sector 12 — had alleged faced delay in possession of their property. The case was argued by advocate M Shahnawaz Khan.In a key finding, the authority held that where initial booking was made in 2018, the promoter could not defer liability by delaying execution of the agreement, which in this case was signed in Dec 2022 with a possession date of July 31, 2023.Relying on Supreme Court precedents, RERA ruled that the reasonable period for delivery of possession is capped at three years from the date of booking or advance payment, regardless of when the formal agreement is executed.The authority quantified the delay interest payable to the complainants at approximately Rs 25 lakh as on the date of the order.It also rejected the builder’s plea seeking extension on grounds of Covid-19, observing that force majeure provisions cannot be used as blanket protection where delays are attributable to the developer.Counsel for the complainants said the order reinforces the principle that the rights of homebuyers flow from the date of booking and payment, and not merely from the execution of agreements.WHY IT MATTERSWho benefited: PEC faculty members (allottees)Key ruling: Timeline counts from booking date, not sale agreementBooking year: 2018 | Agreement signed: Dec 2022Possession deadline cited: July 31, 2023Legal takeaway:Max reasonable delivery period 3 years from booking/paymentBuilders cannot defer liability by delaying agreementsBuilder’s defence:Covid force majeure plea rejectedImpact:Strengthens homebuyers’ rightsSets precedent against project delays and misuse of timelines