News Citation : 2026 LN (CGRERA) 7
The Chhattisgarh Real Estate Regulatory Authority (RERA), Raipur, has directed a developer to hand over possession of a long-delayed flat in Raipur and pay interest compensation to the allottee for the period of delay, holding the promoter responsible for failing to deliver the unit within the promised timeframe.
The case was filed by Ankita Singh, who had booked a flat in the “Kaushalya Mata Vihar” housing project in Sector-02, Raipur, in 2020. According to the complaint, despite the lapse of nearly five years from the date of booking, the project was not completed and possession was repeatedly postponed. The allottee told the Authority that the prolonged delay caused serious financial and mental hardship, as she continued paying rent along with loan-related obligations.
The promoter contested the complaint, arguing that construction delays were caused largely due to the COVID-19 pandemic and its prolonged impact on construction activity. The developer also stated that substantial construction work had been completed and that only finishing and fitting work remained. It was further argued that the allottee had not paid the final outstanding amount mentioned in the demand notice, which, according to the promoter, was necessary before possession and registration of the sale deed could be completed.
After examining the allotment letter, payment records, correspondence between the parties, and photographic evidence of construction status, the Authority noted that the promoter had failed to hand over possession within the period envisaged under the allotment terms. RERA held that mere partial completion or ongoing finishing work could not justify indefinite delay in possession, particularly when the allottee had already paid a substantial portion of the total consideration.
The Authority concluded that the promoter was liable under Section 18 of the Real Estate (Regulation and Development) Act, 2016, for delay in handing over possession. It directed the allottee to deposit the pending final amount as per the demand notice within the stipulated time. Upon receipt of this amount, the promoter was ordered to hand over possession of the flat within 30 days and complete all formalities, including execution and registration of the sale deed.
In addition, RERA ordered the promoter to pay interest of ₹4.05 lakh to the allottee for the delay period from 2021 to 2024, calculated at the applicable State Bank of India marginal cost-based lending rate plus two percent. The Authority further clarified that if possession is not handed over within the prescribed period, the promoter will be liable to pay monthly interest until actual possession is given.
The order reinforces the statutory obligation of developers to adhere to committed timelines and affirms that buyers cannot be made to suffer indefinitely due to project delays, even where external factors are cited. The decision adds to a growing body of RERA jurisprudence emphasizing accountability and timely delivery in the real estate sector.
