Punjab Real Estate Regulatory Authority (RERA) directed Omaxe New Chandigarh Developers Pvt Ltd to pay interest to homebuyers Naresh Garg and Anju Garg for delayed possession of their apartment in Caspean E tower of The Lake project, New Chandigarh.

Promised possession date: July 31, 2023. Buyers had paid more than 90% of sale consideration. Possession had not been delivered nearly three years after the promised date.

Buyers sought possession and interest for delayed period, arguing the project remained incomplete and no occupation certificate (OC) had been obtained.

Developer attributed delay to Covid-19 disruptions and delays in obtaining regulatory approvals, claiming good faith effort.

RERA Member-II Arunvir Vashista found the developer failed to deliver within agreed timeline and provided no definite completion timeline. Section 18 of Real Estate (Regulation and Development) Act, 2016 grants allottees statutory right to receive interest for delayed possession.

Order: Omaxe must pay interest at rate prescribed under Punjab RERA Rules, 2017—highest marginal cost of lending rate (MCLR) plus two per cent—from July 31, 2023, until valid offer of possession is made after obtaining occupancy and completion certificates.

Chandigarh State Consumer Disputes Redressal Commission (Justice Raj Shekhar Attri, member Preetinder Singh) ruled that fit-out possession without statutory completion certificate cannot be treated as valid possession offer.

Case: Ludhiana doctors Pankaj Mahindra and Manisha Mahindra v Omaxe New Chandigarh Developers Pvt Ltd; unit in project "The Lake" at Mullanpur.

Complaints: Booked flat in 2015 under subvention scheme; contractual possession due March 2019; paid ₹68 lakh; construction remained incomplete for years; amenities unfinished; developer stopped paying pre-EMIs; developer issued fit-out possession letter March 2024.

Developer's defence: Paid ₹38.2 lakh under subvention scheme till offer of possession; occupation certificate obtained October 11, 2024; settlement deed June 14, 2024 settled all disputes.

Commission ruling: Fit-out permissions allow only internal works, not valid possession offer; completion certificate mandatory alongside occupation certificate; settlement deed cannot legitimise unlawful possession offer; developer in default as completion certificate still not obtained.

Orders: Developer must hand over physical possession within three months after completing all works and amenities and obtaining completion certificate; refund pre-EMIs paid by complainants from own pocket; continue 9% interest delay compensation for post-settlement period; pay ₹75,000 mental harassment; pay ₹35,000 litigation costs.

Omaxe Ltd's subsidiary Omaxe New Chandigarh Developers Pvt Ltd raised Rs 431 crore by issuing 43,100 Non-Convertible Debentures (NCDs) of Rs 1 lakh face value each through private placement. Omaxe recently announced acquisition of 450-acre land parcel in Indore for township development at Rs 1,200 crore investment. Omaxe is present in 30 cities across eight states in North and Central India, has delivered over 135 million sq ft of area since inception.