December 23, 2025 : The State Consumer Disputes Redressal Commission, Chandigarh has held real estate developer Omaxe Chandigarh Extension Developers Pvt. Ltd., now known as Omaxe New Chandigarh Developers Pvt. Ltd., guilty of deficiency in service and unfair trade practice for failing to hand over lawful possession of a residential flat within the committed time and for issuing only a so-called “fit-out possession” letter without securing the mandatory Completion Certificate.
The Commission, comprising Justice Raj Shekhar Attri (President) and Preetinder Singh (Member), found that the developer repeatedly violated statutory and contractual obligations, despite having accepted substantial payments from the homebuyers.
The case arose from a complaint filed by Pankaj Mahindra and Manisha Mahindra, who had booked a flat in Omaxe’s “The Lake” project at New Chandigarh in 2015 under a subvention scheme. As per the allotment terms, possession was to be delivered by March 18, 2019. However, the Commission noted that even as late as 2019, the basic structure of the concerned tower was incomplete.
Under the subvention scheme, Omaxe was obligated to service the Pre-EMIs on the home loan until lawful possession was handed over. The Commission observed that the developer stopped paying these Pre-EMIs in November 2020, forcing the complainants to shift their loan from Axis Bank to HDFC Bank. Despite this, Omaxe issued only a “fit-out possession” letter on March 11, 2024, without obtaining a Completion Certificate.
Although a Settlement Deed dated June 14, 2024 resolved disputes up to that date, the Commission made it clear that the settlement did not absolve the developer of its obligations thereafter. Crucially, even after June 2024, Omaxe failed to secure the Completion Certificate, which is a statutory prerequisite for lawful possession.
Rejecting Omaxe’s defence that the complainants were merely investors, the Commission held that the buyers qualified as “consumers”, noting that the developer failed to produce any evidence to show an investment motive. It also dismissed the argument that the Occupation Certificate obtained in October 2024 was sufficient, drawing a clear legal distinction between an Occupation Certificate and a Completion Certificate.
Relying on binding precedents of the Supreme Court and the National Consumer Commission, the Commission held that possession offered without a Completion Certificate is incomplete, unlawful and unenforceable. It ruled that a “fit-out possession” letter has no legal sanctity and cannot trigger the buyer’s obligation to make further payments.
On the issue of delay compensation, the Commission held that Omaxe remained liable to continue paying Pre-EMIs under the subvention scheme until lawful possession supported by a valid Completion Certificate is delivered. The delay after June 14, 2024 was held to be solely attributable to the developer.
Accordingly, the Commission directed Omaxe to hand over complete physical possession of the flat with all promised amenities and a valid Completion Certificate within three months. It also ordered refund of the Pre-EMIs paid by the complainants, payment of delay compensation by way of interest at 9 percent per annum on the amounts paid, along with ₹75,000 as compensation for mental agony and harassment and ₹35,000 towards litigation costs. The complaint against Axis Bank and HDFC Bank was dismissed.
The ruling reinforces that builders cannot bypass statutory requirements by offering “fit-out possession” and remain financially and legally accountable until lawful possession is delivered to homebuyers.
Case Title: Pankaj Mahindra & Anr. v. Omaxe Chandigarh Extension Developers Pvt. Ltd. (now Omaxe New Chandigarh Developers Pvt. Ltd.)
Case No: Consumer Complaint No. SC/4/CC/73/2025
