Order Name: Punjab Real Estate Regulatory Authority vs ATS Golf Meadows Lifestyle
Case No.: Not Available
In a recent judgment, the Punjab Real Estate Regulatory Authority (RERA) made a significant ruling regarding the delay in property possession. The Authority, under Justice Balbir Singh, ruled that the delay in possession should be calculated from the date specified in the pre-RERA agreement between the builder and the homebuyer.
To understand the case, let’s take a look at the background. The complainants, a group of homebuyers, bought a flat in a project named ‘ATS Golf Meadows Lifestyle’. The flat cost them Rs. 5,176,000 and the agreement for sale was signed on June 18, 2014. According to the agreement’s Clause 14, the builder had to deliver the flat within 36 months from the start of the tower construction, with an additional grace period of 6 months. The homebuyers paid Rs. 4,676,000 to the builder, even taking a loan from HDFC Bank. However, the builder failed to complete the project on time, leading the homebuyers to seek legal recourse.
The builder’s defense was that the project’s completion date was extended till August 31, 2026, as declared at the time of project registration. They further argued that since the agreement was signed in 2014, before the implementation of RERA in 2016, the case was outside RERA’s jurisdiction.
However, RERA rejected the builder’s arguments. The Authority pointed out that the agreement signed on June 18, 2014, clearly stated that the flat should have been handed over by December 2017. The Authority quoted a Bombay High Court ruling in the case of Neel Kamal Realtors Suburban Pvt. Ltd. vs Union of India, which stated that the delay in possession should be calculated from the date mentioned in the pre-RERA sale agreement.
RERA further clarified that it is applicable for projects that were ongoing and subsequently registered under RERA. This made the homebuyers’ complaint valid under its jurisdiction. As a result, the builder was ordered to pay Rs. 1,50,000 as compensation for the significant delay in project completion and the resulting distress and legal expenses borne by the homebuyers.
In summary, this judgment of Punjab RERA emphasizes that builders cannot delay possession beyond the date agreed upon in the pre-RERA agreement. It serves as a reminder to builders to adhere to their commitments and a reassurance to homebuyers that their rights will be protected.
