News Citation : 2026 LN (CGRERA) 2
The Chhattisgarh Real Estate Regulatory Authority (RERA), Raipur, has directed a real estate developer to refund ₹51.97 lakh to a homebuyer after finding prolonged and unjustified delay in handing over possession of a residential flat, despite substantial payment having been made more than a decade ago.
The case arose from a complaint filed by Kusum Kothari against the developers of the “Rajat Homes” residential project in Durg district. Kothari had booked Flat No. 501 in Block 3 of the project and entered into a sale agreement on November 10, 2014, for a total consideration of ₹30 lakh. Records show that she paid ₹24 lakh by 2015, largely through a housing loan, and continued servicing the bank loan while awaiting possession.
Under the agreement, the developer was required to complete construction and hand over possession within 18 months, including a grace period. However, even after nearly 10 years, the flat was neither completed nor handed over. The Authority noted that the block containing the complainant’s flat had not been constructed at all, and no valid offer of possession was ever made.
The developer argued that the complaint was barred by limitation and also claimed that the buyer had not paid the full sale consideration. RERA rejected both objections. It held that the cause of action was “continuous” because possession had never been delivered, making the complaint maintainable despite the passage of time. The Authority also found that the buyer had paid amounts in line with the construction-linked payment schedule, while the developer failed to commence or complete construction.
RERA further observed that the project, though registered under the Real Estate (Regulation and Development) Act, 2016, did not have a valid completion certificate for all buildings. Partial occupancy approvals obtained for some blocks could not be treated as project completion, especially when the buyer’s block remained incomplete.
Citing the statutory obligations of promoters under Sections 11 and 18 of the RERA Act, the Authority held the developer liable to refund the amount received along with interest. It ordered the developer to refund ₹24 lakh with interest calculated from 2015 till June 2025, amounting to ₹27.97 lakh as interest. The total refund payable thus came to ₹51.97 lakh.
The Authority directed that the refund be made within 45 days, applying interest at the rate of the State Bank of India’s marginal cost of funds-based lending rate plus 2 percent, in line with RERA rules.
The order reinforces RERA’s position that prolonged delays in delivery of possession, even in older projects, can expose developers to substantial financial liability, especially where buyers continue to bear loan burdens without receiving their homes.
