News Citation : 2026 LN (CGRERA) 3
The Chhattisgarh Real Estate Regulatory Authority (RERA), Raipur, has directed a real estate developer to pay interest to a homebuyer for failing to provide essential amenities within the promised timeline at a plotted housing project in Raipur district.
The order was passed in a complaint filed by a homebuyer residing in Plot No. G-04 of the “Sai Ram City” project located at village Pacheda, Raipur. The project is being developed by Vindhyavasini Infrabuild LLP and is registered with RERA under the Real Estate (Regulation and Development) Act, 2016.
The complainant alleged that at the time of booking and execution of the sale deed, the developer had assured regular water supply, proper electricity infrastructure, construction of a water tank, installation of a transformer, and development of common amenities such as gardens and play areas. However, even after taking possession, these basic facilities were not provided.
According to the complaint, water supply remained irregular and inadequate, electricity was unstable due to the absence of a transformer, and common areas had not been developed. The buyer also stated that repeated complaints to the developer yielded no corrective action, amounting to deficiency in service and violation of Sections 11 and 14 of the RERA Act.
The developer opposed the complaint, arguing that the project was still under development and that timelines had been affected by the COVID-19 pandemic. It was also contended that temporary electricity connections had been provided and that work on the water tank and transformer was in progress. The developer further claimed that the project’s completion date, after accounting for pandemic-related extensions, stood extended up to 1 September 2025.
After examining the pleadings, documents, and statutory obligations under RERA, the Authority held that while the project completion timeline may have been extended, the obligation to provide basic and essential services to allottees could not be deferred. RERA observed that access to water and electricity constitutes fundamental amenities and that failure to provide them within the stipulated period attracts statutory consequences.
RERA ruled that the developer had failed to ensure timely provision of essential facilities and was therefore liable to compensate the allottee. The Authority directed the developer to pay interest on the plot cost of ₹5,56,200 at the applicable State Bank of India marginal cost of lending rate plus two percent, amounting to an effective rate of 10.80 percent per annum.
The interest is payable from 1 September 2025 until the developer obtains a valid completion certificate from the competent authority. RERA also clarified that restrictions imposed on the sale or transfer of project plots would continue, subject to recovery proceedings already ordered by courts or authorities.
The order reinforces the principle that developers cannot delay basic infrastructure under the guise of project completion timelines and that allottees are entitled to minimum essential services even in ongoing projects.
