Raj-RERA Clarifies Liability for Delayed Possession and Outstanding Dues

Rajasthan Real Estate Regulatory Authority (Raj-RERA) has issued a significant ruling in a case involving delayed possession and outstanding dues. The authority, in a complaint filed under Section 31 of the Real Estate (Regulation and Development) Act, 2016, clarified that a promoter cannot avoid liability for delayed possession by solely relying on the allottee's payment default.

The complaint was filed by an allottee against Ravi Surya Affordable Homes Pvt. Ltd., the promoter of the Surya Residency project. The complainant, along with co-allottee Ms. Nilam Rani, had booked Flat No. C-510 in the project on 24 March 2018, for a total sale consideration of ₹13,82,000. According to the agreement, possession was to be handed over by 30 November 2021. However, the promoter failed to deliver the possession on time, causing significant delays.

The complainant alleged that despite the substantial delay, the promoter refused to issue the necessary developer’s NOC required by the financer and threatened to cancel the allotment due to outstanding dues. The complainant, aggrieved by the promoter's actions, approached Raj-RERA seeking possession, delay interest, and other reliefs.

The Single Bench of Veenu Gupta, Chairperson of Raj-RERA, observed that while the complainant had indeed defaulted in clearing certain outstanding dues, the promoter could not escape liability for the delay in handing over possession after the committed possession date. The authority stated:

“While the complainant cannot avoid compliance of his contractual payment obligations, he equally cannot be deprived of compensation for the period during which lawful possession of the subject unit remained unavailable.”

The authority noted that the complainant had made part payments of ₹7,56,602 against the total sale consideration of ₹13,82,000. The agreement's Clause 9.3(i) mandated timely payments, and any default, despite notice, attracted consequences, including liability to pay interest on the outstanding dues. However, the proviso to Clause 9.2 of the agreement provided that if the allottee did not seek withdrawal from the project or termination of the agreement, they were entitled to interest for the delayed period until possession was handed over.

The authority opined that the ends of justice would be met by directing the complainant to clear the outstanding dues according to the agreement and directing the promoter to hand over possession of the property along with delayed possession interest at the prescribed rate. Accordingly, the authority directed the complainant to deposit the outstanding balance amount payable under the agreement. The promoter was ordered to hand over physical possession of the property upon clearance of dues and to issue the necessary developer’s NOC and cooperate in registration and related formalities.

The authority also awarded delayed possession interest at the rate of 10.80% per annum from the committed date of possession, i.e., 30 November 2021, to the date of issuance of the occupancy certificate, i.e., 9 April 2025. The amount of delayed possession interest payable to the complainant was to be adjusted against the outstanding dues payable to the promoter, and any remaining excess or deficit amount was to be paid by the respective party.

This ruling by Raj-RERA sets a clear precedent for future cases involving delayed possession and outstanding dues, ensuring that both parties are held accountable and that the rights of allottees are protected. It highlights the importance of adhering to contractual obligations while also providing compensation for delays caused by promoters.

[Case: Ramswaroop Swami v. Ravi Surya Affordable Homes (P) Ltd., RAJ-RERA-C-N-2025-8982, decided on 18-5-2026]

Advocates who appeared in this case: For the petitioner: Ashish Guwalani, Adv For the respondent: Hardik Mishra, Adv