• RERA
  • RERA Raipur directs authority to hand over house in 30 days, orders interest for delay in PMAY housing case.

    Chhattisgarh Real Estate Regulatory Authority | CG RERA

    News Citation : 2026 LN (CGRERA) 25

    March 23, 2026 : The Real Estate Regulatory Authority (RERA), Raipur has directed the Raipur Development Authority to hand over possession of a house to an allottee within 30 days, while also providing for interest compensation in case of further delay.

    The order, passed on March 23, 2026, came in a complaint filed by Shashi Raut against the Raipur Development Authority concerning a housing unit under the Pradhan Mantri Awas Yojana.

    According to the complaint, the allottee had applied for a house in 2018 under a government housing scheme and was allotted a row house in Sector 1 of Kamal Vihar, Raipur. The total cost of the property was ₹8.64 lakh, which the allottee fully paid in 10 instalments, with the final payment made on February 15, 2021. However, despite full payment, possession of the house was not handed over even after several years.

    The Raipur Development Authority, in its response, argued that the delay occurred due to multiple factors, including the COVID-19 pandemic, slow progress by contractors, cancellation of contracts, and delays in tendering processes. It also contended that the agreement allowed possession to be given within three years or upon completion of construction, and that the complainant had accepted these terms.

    RERA, however, rejected these arguments. The Authority relied on Supreme Court precedents, observing that one-sided contractual terms imposed by developers cannot be enforced if they are unfair to homebuyers. It held that such clauses do not create a level playing field and cannot override the developer’s obligation to complete construction and deliver possession within a reasonable time.

    The Authority noted that the allottee had already paid the entire consideration amount, and therefore was entitled to possession. It further held that failure to hand over the property within the stipulated period amounted to deficiency in service.

    In its final order, RERA directed the Raipur Development Authority to hand over possession of the house, along with the necessary possession certificate, within 30 days. If possession is not delivered by April 23, 2026, the Authority must pay monthly interest to the allottee at a rate of 10.80% per annum, calculated at ₹7,776 per month, until possession is handed over.

    The ruling reinforces the principle that homebuyers cannot be bound by unfair contractual clauses and that developers remain accountable for delays, even when citing external factors.

    Case Reference : Case No. M-PRO-2025-03241 – Shashi Raut vs Raipur Development Authority (Kaushalya Mata Vihar)

    Law Notify Team

    Team Law Notify

    Law Notify is an independent legal information platform working in the field of law science since 2018. It focuses on reporting court news, landmark judgments, and developments in laws, rules, and government notifications.
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