The Punjab Real Estate Regulatory Authority (RERA) has restored a Zirakpur homebuyer’s allotment after setting aside its cancellation by Suksha Developers, which had demanded a penalty of ₹16 lakh from him for not paying the outstanding amount. The authority also directed the builder to pay 10% annual interest for delaying possession of the flat in its Sushma Valencia project
In its order, RERA also directed the developer to issue a possession letter after obtaining the completion certificate from the competent authority.
Vishal Talwar, who booked a flat on the second floor of Sushma Valencia at Nagla village, approached the authority after the builder cancelled his allotment in December 2024 and demanded a penalty of ₹17 lakh.
According to the complaint, Talwar paid ₹53 Lakh towards the flat, which cost ₹59 lakh, while HDFC disbursed ₹45 lakh as a housing loan. The agreement for sale, executed on July 9, 2019, required the developer to hand over possession by October 8, 2021.
The builder offered possession on October 1, 2024, and demanded ₹10 lakh in outstanding dues, besides maintenance charges of ₹72,151 for October 2024 to March 2026. Talwar objected, stating that the company had not obtained the completion or occupation certificate.
The developer maintained that it had offered possession and that Talwar failed to clear the balance payment. It also cited Covid-19-related delays and claimed to have paid ₹17 lakh towards his pre-EMIs.
RERA noted that the builder had failed to obtain the completion certificate and deliver possession within the agreed timeline. It held that the possession offer was invalid and that the cancellation of the allotment had no legal basis. The authority also set aside maintenance and holding charges imposed on the buyer.
Allowing the complaint partly, RERA directed the company to pay 10% annual interest on ₹53 lakh from October 8, 2021, till the order date, within 90 days. The builder must continue paying interest until possession or two months after obtaining the completion certificate, whichever is earlier.
The authority excluded four months from the delay period due to Covid-19 and ordered adjustment of ₹17 lakh towards pre-EMI interest against the awarded interest.