News Citation : 2026 LN (CGRERA) 14
February 17, 2026 : The Chhattisgarh Real Estate Regulatory Authority has directed a homebuyer to clear pending dues before taking possession of a flat in the Palm Resort housing project in Raipur, while holding that the developer cannot be blamed for delay in handing over possession when the buyer failed to pay the agreed amount on time.
The dispute relates to Flat No. C-501 in the “Palm Resort” project at Saddu, Raipur, registered with RERA under number PCGRERA290420001106. The buyer had booked the flat for a total consideration of Rs 29.50 lakh, including GST, and paid Rs 24.50 lakh over multiple instalments. According to the complaint, the developer had promised possession by August 19, 2023, but failed to deliver the flat within the stipulated time despite receiving substantial payment.
The buyer approached RERA under Section 31 of the Real Estate (Regulation and Development) Act, 2016, seeking possession of the flat along with interest for delay and compensation for mental harassment. He argued that even after paying most of the amount, the developer neither completed the project nor handed over possession within the agreed timeline. He also pointed to quarterly progress updates and alleged non-compliance with statutory obligations.
The developer contested the allegations and maintained that the project was delayed due to force majeure conditions, including the COVID-19 pandemic, which led to nationwide lockdowns, labour shortages and supply chain disruptions. The promoter cited extensions granted by the authority under Section 6 of the RERA Act, which legally extended the completion timeline.
More importantly, the developer argued that under the payment schedule in the agreement for sale, the buyer was required to pay 90 percent of the total sale consideration, amounting to Rs 26.55 lakh, at the finishing stage. However, even after notice dated February 11, 2025, the buyer had not paid the full 90 percent amount. As per records, Rs 2.05 lakh remained unpaid out of the required 90 percent, and an additional Rs 2.95 lakh was payable at the time of registry.
The matter had earlier resulted in an order dated September 3, 2025, but that decision was set aside by the Chhattisgarh Real Estate Appellate Tribunal in Appeal No. 369/2025 on December 22, 2025. The appellate tribunal remanded the case back to RERA for fresh consideration, observing that the authority had not adequately examined whether the buyer had fulfilled his payment obligations before claiming delay.
After rehearing the matter, RERA noted that the agreement clearly required staged payments linked to construction milestones. It relied on Section 18 and Section 19(6) and (7) of the RERA Act, which place corresponding obligations on both promoter and allottee. The authority also referred to a prior appellate ruling holding that if an allottee fails to pay the full amount as per the agreement, it cannot be said that the promoter has defaulted in handing over possession within the stipulated time.
RERA observed that the buyer had admittedly paid Rs 24.50 lakh but had not deposited the full 90 percent amount required at the finishing stage. In light of this non-compliance, the authority concluded that the promoter could not be held responsible for delay attributable to the buyer’s own default in payment.
In its final order dated February 16, 2026, RERA directed the buyer to pay the remaining Rs 2.05 lakh within 45 days. Upon receipt of this amount, the developer must obtain the occupancy certificate from the competent authority and execute the registered sale deed for Flat C-501 after receiving the balance Rs 2.95 lakh payable at the time of registry. The authority declined the buyer’s claim for interest on the deposited amount.
The ruling reinforces a key principle under the RERA framework that rights and obligations under a real estate agreement operate both ways. A buyer seeking interest for delayed possession must first demonstrate compliance with the agreed payment schedule.
Case Reference : Sachin Nara v. M/s Agrawal Construction and Contractors.
