Punjab RERA orders Omaxe to pay delay interest to New Chandigarh homebuyers

The Punjab Real Estate Regulatory Authority (RERA) has ordered Omaxe New Chandigarh Developers Pvt Ltd to pay delayed possession interest to two homebuyers from Amritsar who booked a penthouse in the company’s New Chandigarh housing project. However, the authority rejected the buyers’ request for a refund related to charges collected on the basis of super area.

The case involved a penthouse booked in “The Lake” residential project at Omaxe New Chandigarh in Mohali. The buyers had approached Punjab RERA after claiming that the developer failed to hand over possession of the property on time. They also questioned the method used to calculate the property price, arguing that they were charged unfairly.

The buyers filed the complaint under Section 31 of the Real Estate (Regulation and Development) Act, 2016 through their lawyer. They sought compensation for delayed possession and also demanded a refund of what they described as excess money collected through super area charges.

According to documents presented before the authority, the buyers were allotted a penthouse unit in “Tower Mystic-A” under an allotment and buyer agreement signed on January 4, 2023. The total cost of the property was fixed at around ₹1.85 crore.

Out of this total amount, the buyers had already paid more than ₹76 lakh, including Goods and Services Tax (GST). Like many homebuyers, they expected the builder to hand over the property according to the timeline promised in the agreement.

The complainants told the authority that the possession date mentioned in the agreement was July 31, 2023. However, according to them, the possession was not delivered within that period.

Because of this delay, the buyers approached Punjab RERA and demanded relief. They argued that since they had invested a large amount of money in the property, the delay caused financial and personal inconvenience.

At the same time, the buyers also raised objections over how the property size had been calculated. They argued that the company charged them based on “super area” rather than “carpet area,” which they claimed resulted in higher payments.

In real estate, carpet area generally refers to the actual usable area inside a home, while super area may include common spaces such as corridors, staircases, lifts and other shared facilities.

The complainants argued that charging based on super area caused them financial loss and sought a refund of the amount they believed was collected in excess.

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RERA grants relief on delayed possession

Omaxe New Chandigarh Developers denied wrongdoing and defended its position before the authority. The company said it had completed the project process and received an occupation certificate in October 2023.

An occupation certificate is an important document issued by authorities after construction is completed and the building is considered fit for occupation.

The company further said possession of the penthouse was officially offered to the buyers in November 2023.

According to Omaxe, the delay was not unreasonable and the agreement signed by the buyers clearly mentioned both carpet area and super area measurements. The developer argued that the buyers accepted the pricing method when signing the contract.

After hearing both sides, Punjab RERA partly accepted the complaint and ruled in favour of the buyers regarding delayed possession.

The authority held that the buyers were entitled to delayed possession interest under Section 18 of the RERA Act. It directed Omaxe to pay interest for the delay period beginning from July 31, 2023 until January 18, 2024.

This means the buyers will receive financial compensation because possession was not delivered within the agreed timeline.

Section 18 of the RERA Act protects homebuyers when a builder delays possession of a project. Under this section, buyers may claim compensation or interest if developers fail to complete projects on time.

The authority believed the buyers deserved relief because the promised possession date had passed and there had been a delay before the process moved forward.

For many homebuyers, delayed possession creates financial pressure because they may continue paying rent while also paying instalments on a home loan.

Experts say compensation for delay helps reduce some of that burden and encourages builders to follow timelines more seriously.

Authority rejects refund over super area charges

However, Punjab RERA did not agree with the buyers on the issue of super area charges.

The authority rejected the request for refund and ruled that the pricing method used in the agreement could not be challenged later because the buyers had accepted it at the time of signing.

Punjab RERA observed that the standard RERA model agreement does not ban the sale of property based on super area. Since the agreement clearly mentioned both carpet area and super area, the authority believed there was transparency in the transaction.

The authority also referred to an important legal principle called “Pacta Sunt Servanda,” a Latin phrase meaning agreements must be honoured.

In simple words, this principle means that once two parties willingly sign a contract and agree to its terms, they are generally expected to follow those terms.

Punjab RERA said that because the buyers voluntarily accepted the agreement and its pricing conditions, they could not later demand a refund for charges already mentioned clearly in the contract.

The ruling highlights an important lesson for homebuyers. Experts say buyers should carefully read all builder agreements before signing, especially details about pricing, carpet area, super area, possession timelines and penalties for delays.

Many property buyers focus mainly on location, size and cost but often overlook legal and technical details in agreements.

Real estate specialists believe RERA has strengthened protections for buyers in India by offering a faster system to resolve disputes between builders and customers. However, they also say buyers must understand contract terms carefully to avoid future disagreements.

The Punjab RERA decision gives partial relief to the New Chandigarh penthouse buyers. While they succeeded in getting compensation for delayed possession, their challenge against super area charges did not succeed because the authority found that the terms had already been clearly accepted in the signed agreement.