Chhattisgarh RERA orders Housing Board to refund buyer after 9-year delay in PMAY housing project

News Citation : 2026 LN (CG-RERA) 33

May 13, 2026 : A major ruling by the Chhattisgarh Real Estate Regulatory Authority has brought relief to a homebuyer who waited nearly nine years for possession of an affordable housing unit under the Pradhan Mantri Awas Yojana and Chief Minister Housing Scheme in Nava Raipur. The authority directed the Chhattisgarh Housing Board to refund the entire amount paid by the allottee along with interest after finding prolonged delay and non-delivery of the flat despite full payment being made years earlier.

The order was passed on May 13, 2026, by a bench comprising Chairman Sanjay Shukla and Member Dhananjay Devangan in a complaint filed by Deepti Parekh against the Chhattisgarh Housing Board in relation to a housing project registered under RERA bearing registration number PCGRERA070718000487.

According to the complaint, the allottee had applied for a residential flat under the government-backed affordable housing scheme in Sector-16, Nava Raipur. An interim allotment was issued in April 2016 for Flat No. 202 in Block 79 of the project. The complainant stated that she deposited the entire consideration amount of Rs. 8.5 lakh by April 8, 2018, including registration charges, after obtaining a housing loan through Tata Capital Housing Finance.

The complainant argued that under the terms of allotment, the Housing Board was expected to provide possession and execute registration of the property by May 2019. However, despite repeated visits and communications, the flat was neither completed nor handed over. She alleged that the authorities continued delaying the project while she remained burdened with rent payments and loan interest for several years.

The homebuyer further claimed that she had been paying monthly rent of around Rs. 6,000 while simultaneously servicing the housing loan. She also stated that despite eligibility for interest subsidy under the central housing scheme, she had not received the benefit. The complaint sought refund of the deposited amount, reimbursement of loan-related losses, interest, compensation for mental harassment, and other consequential reliefs amounting to over Rs. 40 lakh.

In response, the Chhattisgarh Housing Board admitted that the allottee had deposited the entire amount of Rs. 8.5 lakh. However, it defended the delay by citing technical and financial difficulties in construction. The Board argued that certain blocks had insufficient registrations, making construction financially unviable. It also contended that alternative flats in other sectors and blocks were repeatedly offered to the complainant without additional charges, but she allegedly did not respond to the proposals.

The Housing Board relied on several communications issued between 2019 and 2025 offering revised allotments and options for alternative accommodation. It asserted that the complainant had opportunities to shift to other completed or nearly completed units but failed to cooperate. The Board also disputed claims relating to rent expenses and alleged financial losses, arguing that no documentary evidence had been produced for such claims.

After examining the pleadings and documents, the RERA authority framed issues regarding jurisdiction, limitation, and entitlement to relief. The authority held that the dispute squarely fell within the jurisdiction of the regulator under Section 31 of the Real Estate (Regulation and Development) Act, 2016 because the complaint concerned non-delivery of possession despite full payment having been received by the promoter.

The authority also rejected the objection regarding limitation and held that the cause of action was continuing because possession and ownership had still not been transferred to the allottee.

Importantly, the bench noted that the Housing Board itself admitted that the entire sale consideration had been paid by April 2018 and that possession was supposed to be delivered by 2019. The authority further observed that the complainant continued paying interest on the housing loan while not receiving possession of the property.

Referring to Section 18 of the RERA Act, the authority emphasized that when a promoter fails to complete or hand over possession within the stipulated period, the allottee becomes entitled to seek refund along with interest. The order quoted the statutory protection available to homebuyers and held that the Housing Board had violated Section 11(4)(a) and Section 11(4)(c) of the Act by failing to complete construction and transfer possession within the promised timeline.

The authority observed that the allottee was entitled to recover the amount paid along with statutory interest because the project had remained incomplete for years. It held that “the promoter failed to hand over possession within the prescribed period,” making the complainant eligible for refund with interest under Section 18 of the RERA Act.

Consequently, the Chhattisgarh RERA directed the Housing Board to refund Rs. 8.5 lakh along with interest calculated from April 2018 to April 2026 at the rate prescribed under Rule 17 and Section 18 of the RERA framework. The authority calculated the applicable interest rate at 10.80% and ordered payment of a total amount of Rs. 15,84,400 within 30 days.

The ruling is significant for homebuyers trapped in delayed affordable housing projects, particularly those launched under government-backed welfare schemes. The decision reinforces that even state housing authorities and public agencies are bound by the accountability standards imposed under the Real Estate (Regulation and Development) Act, 2016. It also highlights that prolonged delay in delivery of possession can entitle allottees to complete refund with interest, regardless of administrative or financial difficulties cited by the promoter.

Case Reference : M-PRO-2026-03554 (PCGRERA070718000487)