The Punjab Real Estate Regulatory Authority (RERA) has mandated a real estate promoter to compensate homebuyers with approximately Rs 25 lakh as delay interest, asserting that project timelines should be calculated from the initial booking date instead of the signing of the sale agreement.
The complainants, who are faculty members of Punjab Engineering College, Sector 12, claimed they experienced delays in receiving possession of their property. The case was represented by advocate M Shahnawaz Khan. In a crucial determination, the authority concluded that when the initial booking occurred in 2018, the promoter could not evade 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 established that the reasonable timeframe for delivering possession is limited to three years from the date of booking or advance payment, irrespective of when the formal agreement is finalized.
The authority calculated the delay interest owed to the complainants to be around Rs 25 lakh as of the date of the ruling. Additionally, it dismissed the builder’s request for an extension based on Covid-19, noting that force majeure clauses cannot serve as a blanket defense when delays are the responsibility of the developer.
The counsel representing the complainants stated that the ruling reinforces the principle that homebuyers’ rights originate from the date of booking and payment, rather than solely from the execution of agreements.
