RERA Rajasthan (2026.09.10) in Anuj Kumar Parmar vs Shivaay Affordable Homes [Complaint No. RAJ-RERA-C-N-2025-8483] held that;
Mere execution of a sale deed in favour of the complainant that too without handing over of the possession does not absolve the promoter of their statutory liabilities. Since the project remains under ‘LAPSED’ category and in absence of any further extensions since the year 2023, it is established that there has been an inordinate delay in completion of the project. Hence, the complainant is entitled to seek interest for the delay period under Section 18 of the Act from the expected date of handing over possession i.e. 31.03.2023 until physical possession is handed over to him.
Excerpts of the Order;
# 1. This complaint has been instituted under Section 31 of the Real Estate (Regulation and Development) Act, 2016 (hereinafter referred to as ‘the Act’) with regard to the project,“Gulmohar Park”, registered with the Authority bearing registration no. RAJ/P/2017/187, with initial completion date 31.03.2021.
# 2. The complainant booked a flat with the respondent’s scheme and made an advance booking payment of Rs. 51,000/- on 30.11.2021. After receiving a total sum of Rs. 2,39,500/- from the complainant, the respondent executed an agreement for sale dated 26.07.2022 for the flat no. A-801 on 8th Floor for a total sale consideration of Rs. 23,95,000/- with promise to hand over possession by 31.03.2023 as per clause 6.1 of the agreement for sale. The complainant availed a home loan of Rs. 20,00,000/- from HDFC Bank wherein the bank was required to disburse the loan amount directly to the respondent as per construction linked payment plan. The complainant further took an Insurance Premium Funding from HDFC Bank of Rs. 1,09,448/- in order to secure the loan sanctioned by HDFC Bank. The complainant made regular payment and till 29.05.2025 had paid Rs. 23,95,000/-. The complainant regularly raised concern about inordinate delay in the handing over of the possession of the flat. The respondent on 12.05.2025 compelled the complainant to deposit entire consideration amount. As the complainant was in dire need of getting timely possession, he paid the entire amount. The complainant was compelled to execute the sale deed and to secure his interest, executed the sale deed on 02.06.2025 for the said unit, whereas respondent had not availed completion/occupancy certificate for the project on that date. The unit is not in a habitable condition, project is under ‘LAPSED’ category and the respondent has taken two extensions. Thus, the complainant failed to take physical possession of the unit till date. Hence, the complainant sought prayer of the respondent to be directed to complete the remaining development works and pay interest on the entire deposited amount from expected date of possession till actual date of handing over possession after obtaining occupancy certificate.
# 3. The respondent filed reply that the present complaint has been filed as an afterthought with the sole purposes of gaining undue advantage by harassing and pressurizing the respondent to succumb to the unreasonable demands and claims. The completion date provided was not absolute/fixed in nature and it was expressly conditional, subject to force majeure events and other unavoidable circumstances beyond the control of the respondent. The respondent after being fully satisfied with the project site and thereafter executed an agreement to sell. A registered sale deed in favour of the complainant was executed on 02.06.2025. The delay in the completion of project was on account of force majeure reasons such as non-availability of raw materials, delay in payment by allottees, imposition of new government policies, etc. which were beyond the control of the respondent. All the amenities and facilities as promised in the brochure by the respondent are completed and all internal development work on the site is near completion stages in accordance with the approved building plans. Since, the possession of the unit has already been transferred in favour of the complainant, thus, the respondent prayed for dismissal of the present complaint.
# 4. During final arguments, learned counsel for complainant argued similar contentions and raised similar submissions as pleaded in the complaint. It was submitted that the said project is in the ‘LAPSED’ category and no completion/occupancy certificate has been obtained by the respondent till date. The respondent has failed to complete the amenities/facilities promised at the time of booking and has miserably failed to complete the project within stipulated timelines. Hence, the complainant is entitled to seek interest on the entire deposited amount from expected date of handing over possession till the obtaining of valid occupancy certificate.
# 5. Learned counsel for respondent averred similar pleadings and contentions as already raised in the reply to the complaint. It was argued that no payment was received from the complainant during the crucial stages of project completion from the year 2023 to 2025 which has led to inordinate delay in the construction work. The issues pertaining to structural defects/compensation are not maintainable before the Authority and the complainant must approach the learned Adjudicating Officer for such grievances. Hence, the respondent prayed for dismissal of the present complaint.
# 6. Heard and perused the record.
# 7. The status of said project on the official website of the Authority is verified by the Law Researcher. The project is currently marked under the “LAPSED” category. Total 3 extensions were sought by the respondent promoter till 24.12.2025. Quarterly Progress Reports (QPRs) were filed by the respondent promoter till January to March, 2023 showing that 84% of the work is completed (as per R-2 Engineer’s Certificate). Annual Progress Reports (APRs) have been filed for said project till 2022-23. The said project status on the official website of the Authority is taken in judicial notice by the Authority.
# 8. Observations & Conclusion:
An agreement for sale dated 26.07.2022 executed between the parties for Unit No. A-801, the total consideration of the unit of Rs. 23,95,000/- and full payment by the complainant is on record and also admitted by the respondent. The complainant has paid 100% of the sale consideration by 29.05.2025. As per Clause 6.1 read with Part-I of Schedule G of the agreement for sale, the respondent-promoter was contractually bound to hand over physical possession of the unit to the complainant along with all promised facilities and amenities till 31.03.2023. Though, the sale deed was executed on 02.06.2025, the issue of handover of possession is under dispute. The project, "Gulmohar Park" is presently falling under the category of "LAPSED" on web portal of the Authority and the respondent has failed to avail any extensions from the Authority since December, 2025. Till date completion certificate/occupancy certificate is neither available on record nor on web portal of the Authority. Whereas, the respondent/promoter has executed a sale deed in favor of the complainant on 02.06.2025 without obtaining a valid Completion Certificate/Occupancy Certificate (CC/OC) from the competent authority. The complainant has claimed that several structural defects are persisting in the project and several amenities/facilities as promised by the promoter are still incomplete. The clause 1 on page 4 of the sale deed mentioned that the promoter has handed over the vacant physical possession of the demised premises under sale to the allottee. Whereas clause 27 on page 9 of this deed mention that the allottee is agreed for registry and after 45 days of registry, promoter will handover possession. These both are contradictory but, the claim of the complainant that he has not been given possession is not specifically rebutted by the respondent. The project is not yet complete as the respondent in its reply at para 21 & 22 has admitted that project completion work is in progress, internal development work on site is almost near completion in all respect in accordance with the approved building plans. The respondent had admitted delay in completion of the project but, cited reasons that the delay in project completion was due to force majeure events such as raw material shortages, policy changes, alleged default in payments by allottees etc. The respondent has not availed any extension on account of any these reasons. Thus, this argument for delay is not justified. Mere execution of a sale deed in favour of the complainant that too without handing over of the possession does not absolve the promoter of their statutory liabilities. Since the project remains under ‘LAPSED’ category and in absence of any further extensions since the year 2023, it is established that there has been an inordinate delay in completion of the project. Hence, the complainant is entitled to seek interest for the delay period under Section 18 of the Act from the expected date of handing over possession i.e. 31.03.2023 until physical possession is handed over to him.
# 9. In view of the foregoing observations and findings, present complaint is allowed with following directions:-
i) The respondent is directed to hand over possession and also pay interest @ 10.80% i.e. Highest SBI MCLR 8.80%+2.00% on the deposited amount of Rs. 23,95,000/- from 01.04.2023 till date of this order i.e. 10.09.2026 and thereafter from 11.09.2026 till obtaining of occupancy certificate. The accrued interest is payable as under:-
ii) The interest of Rs. 8,91,491/- is worked out from 01.04.2023 to date of this order i.e. 10.09.2026, which is payable to the complainant within 45 days of this order.
iii) Remaining interest amount as accrued from 11.09.2026 till handing over the physical possession shall also be paid to the complainant.
# 10. Compliance of the order shall be made within 45 days of the uploading of this order on the official webpage of the Authority.
# 11. There shall be no order as to costs.
# 12. The order will be uploaded on the webpage of the Authority. Copy of order will be sent to concerned parties and place in the file.
# 13. This complaint stands disposed of with the abovementioned directions and now removed from the cause list of the Authority. The case file be consigned to records, after due compliance.
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