Builder to hand over Zirakpur flat, pay 11% interest for delay
Mohali, Oct. 25 -- The Punjab Real Estate Regulatory Authority (RERA) has set aside Sushma Buildtech Limited's cancellation of a Zirakpur flat allotted to two women from Kaithal and directed the developer to offer possession after obtaining a completion certificate and pay interest at 11% per annum for the delay.
In an order, the authority directed the developer and its representative, Binder Pal Mittal, to pay interest on Rs.36 lakh from August 3, 2024, the agreed possession date, until the date of the order. It also ordered interest at the same rate from the order date until actual possession or two months after the competent authority issues the completion certificate, whichever comes first.
The authority gave the respondents 90 days from receipt of the order to pay the interest accrued up to the date of the order and submit a compliance report.
The complaint was filed by Sushma Garg and Bindu Garg, who booked a three-bedroom apartment, Unit K-001, on the ground floor of Tower K in the Sushma Crescent project.
The agreement for sale, executed on August 3, 2023, set August 3, 2024, as the possession date.
The complainants said they had paid more than 90% of the sale consideration but had neither received possession nor been paid interest for the delay. The developer cancelled the allotment on October 14, 2025, citing their alleged failure to pay outstanding dues, and calculated a refundable amount of Rs.24 lakh after deductions.
The authority held that the cancellation had no legal basis after the agreed possession date was breached and set it aside.
It said the complainants could stop further payments after the developer failed to meet the possession deadline, subject to any outstanding amount and applicable interest for delayed payments under the payment schedule up to that date.
The complainants claimed total payments of Rs.60 lakh, including Rs.25 lakh in cash. However, the authority rejected the cash-payment claim because they produced no receipts, acknowledgements or other documentary evidence to support it.
It relied on the documented payments and directed interest on Rs.36 lakh.
The authority also noted that the project's RERA registration had been extended until January 7, 2026, and that neither side had placed a completion certificate on record.
The respondents did not appear despite receiving notices and were proceeded against ex parte.
The authority warned that failure to comply with its directions could attract a penalty under Section 63 of the Real Estate (Regulation and Development) Act, 2016....
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