Chhattisgarh RERA Orders Compensation Against Sai Ram City Developer Over Lack of Basic Amenities

News Citation : 2026 LN (CGRERA) 4

The Chhattisgarh Real Estate Regulatory Authority (RERA), Raipur, has directed a real estate developer to pay interest-based compensation to a homebuyer after finding prolonged failure in providing basic amenities such as regular water supply and electricity at a residential project near Raipur.

The complaint was filed by Neha Devangan, a resident of Plot No. D-5 and D-6 at the “Sai Ram City” project located in village Pacheda, district Raipur. The project is being developed by Vindhyavasini Infrabuild LLP and is registered with RERA under registration number PCGRERA030320001101.

According to the complainant, at the time of booking and execution of the sale deed, the developer had assured regular water supply, proper electricity infrastructure including installation of a transformer, development of gardens and play areas, and maintenance of common facilities. However, even years after possession, these assurances were not fulfilled. The water supply remained irregular and inadequate, electricity was unstable due to the absence of a dedicated transformer, and promised common amenities had not been developed.

Despite repeated complaints to the developer, no effective corrective action was taken. The complainant alleged that these failures amounted to violation of Sections 11 and 14 of the Real Estate (Regulation and Development) Act, 2016, and sought directions from the Authority to ensure completion of basic infrastructure along with compensation.

The developer opposed the complaint, arguing that the project was still under development and that temporary arrangements for water and electricity had been made. It was also contended that delays were caused due to the COVID-19 pandemic and that applications for extension of the project timeline had already been submitted to the authorities. The developer further stated that construction of the water tank and installation of a transformer were in progress.

After examining the documents, submissions, and registration details of the project, the Authority held that ensuring basic amenities such as water and electricity is a statutory obligation of the promoter and cannot be deferred merely because the project is incomplete. The Authority noted that even after accounting for COVID-related extensions, the developer failed to provide essential services by the committed deadline of 1 September 2025.

RERA ruled that the complainant was entitled to compensation under Section 18 of the Act for the delay in providing basic amenities. The Authority directed the developer to pay interest at the rate of 10.80 percent per annum on the amount of ₹8.10 lakh, which works out to ₹7,290 per month, starting from 1 September 2025 until the issuance of the project’s completion certificate.

The Authority also clarified that restrictions earlier imposed on the sale of plots in the project would continue, except to the extent required for recovery of the awarded amount. Copies of the order have been directed to be sent to the District Collector and Registrar concerned for compliance.

The order was passed on 7 January 2026 by the bench comprising Chairperson Sanjay Shukla and Member Dhananjay Devangan.