Punjab RERA Slaps Rs 44.63 Lakh Delay Interest on Omaxe for Unilateral Area Hike and Delayed Possession

The Punjab Real Estate Regulatory Authority (RERA) has issued a significant ruling against Omaxe Chandigarh Extension Developers Pvt Ltd, ordering the company to pay Rs 44,63,919 as delay interest for the 'The Lake' project in New Chandigarh. This decision comes following a complaint filed by senior bureaucrats Anil Kumar Sanghi and Sunita Sanghi.

The order was passed by RERA chairman Rakesh Kumar Goyal under sections 31 and 40(1) of the Real Estate (Regulation & Development) Act, 2016. According to the complainants' counsel, Shahnawaz Khan, his clients had already paid Rs 76,47,972 out of the total sale value of Rs 82,11,488. The agreement stipulated that possession was to be handed over by September 7, 2019, including the grace period. However, the developer failed to meet this deadline.

RERA ruled that a 'valid offer of possession' was only issued on June 27, 2025, even though the tower received its occupancy certificate on November 26, 2024. The authority clarified that merely obtaining an occupancy certificate does not absolve the promoter of liability for delay. RERA calculated the compensation for the period from October 1, 2019, to June 27, 2025, determining the delay interest at Rs 44,63,919.

Citing the Supreme Court’s Newtech Promoters judgment, RERA ordered that the amount be recovered as arrears of land revenue. Advocate Shahnawaz Khan stated that Omaxe's unilateral increase in the flat’s super area from 1885 sq ft to 1975 sq ft and the corresponding demand calculated at Rs 3,690 per sq ft was held illegal. RERA has struck down this demand, noting that it violates statutory provisions and previous RERA rulings.

The complainants also alleged excess charging of Rs 30,41,532 due to inflated area calculations and an earlier possession offer issued without a valid occupancy certificate. Omaxe’s contention that the allotment pre-dated RERA and, therefore, the complaint was not maintainable was rejected by the authority.

This development paves the way for the majority of allotment/majority buyers agreement holders that came into existence post-Rera Act. RERA directed that a debt recovery certificate be issued after 90 days and forwarded to the competent authority under the Punjab Land Revenue Act, 1887. The complainants have been declared 'decree holders' and the developer 'judgment debtor' for the purpose of recovery under the RERA Act.

The case, involving senior government officers, is being seen as a significant precedent for homebuyers across Punjab, especially those challenging unilateral area hikes and delayed possession in large housing projects.