Last Updated on April 3, 2026 by Satish Mishra
Post is about Shivalik City Mohali Complaint wherein RERA Punjab Orders Refund with Interest in Shivalik Towers Case (Mohali).
In a detailed and significant ruling, the Punjab Real Estate Regulatory Authority allowed a homebuyer’s complaint and directed the builder to refund the deposited amount along with interest, highlighting prolonged delay and deficiency in service.
Complaints against Shivalik Infrastructure and Developers Pvt. Ltd. regarding projects in Shivalik City, Mohali (often including areas like Sector 127), primarily revolve around project delays, failure to deliver possession, and lack of essential infrastructure.
Shivalik City Mohali Complaints Summary:
- RERA & Consumer Court Complaints: Numerous buyers have filed complaints with RERA Punjab and State Consumer Disputes Redressal Commission for refunds, interest, and compensation due to inordinate delays in handing over possession of plots and flats.
- Specific Issues: Common grievances include failure to obtain completion certificates, failure to provide electricity connections, and mismanagement of funds.
- Legal Action: RERA has issued orders for developers to refund money with interest, and in some cases, pay compensation for mental harassment.
- Public Safety Issues: There have been reports regarding neglected road repairs, waterlogged, and unpaved roads within the Kharar/Shivalik City area, causing safety concerns for residents.
Background of the Case
The complaint was filed by a homebuyer against:
- Shivalik Infrastructure and Developers Pvt. Ltd. (Developer)
- LIC Housing Finance Ltd. (Financing institution)
The complainant had purchased a flat in Shivalik Towers, Phase-1, Mohali under re-allotment in 2006 and paid approximately ₹11.83 lakh out of a total ₹21.59 lakh.
As per the agreement:
- Possession was to be delivered within one year
- However, possession was never handed over even after many years
Key Developments
- The developer cancelled the agreement in 2012 and refunded the deposited amount
- The complainant rejected the refund and initiated legal proceedings
- The matter went through multiple forums including:
- District Consumer Forum
- State Commission
- National Commission (NCDRC)
Despite orders, the project remained incomplete even after 15+ years, clearly indicating deficiency in service.
Proceedings Before RERA
The complaint was eventually filed before RERA Punjab.
Key observations from the proceedings (Pages 4–6):
- The developer repeatedly failed to appear
- Notices were issued multiple times, including publication in newspapers
- The builder did not contest the matter effectively
Legal Findings by RERA
RERA made several crucial findings:
✔ Delay in Possession
The promised possession date was 2007, but even after many years, no possession was given.
✔ Deficiency in Service
The prolonged delay of over 15 years constituted:
- Deficiency in service
- Unfair trade practice
Important Legal Principle (Subsequent Allottee)
A key issue was that the complainant was a subsequent allottee (re-allotment case).
RERA, relying on Supreme Court judgments, held that:
- The buyer steps into the shoes of the original allottee
- Refund is based on actual amount received by the builder
- Interest is payable from the date of payment
Final Order by RERA
RERA Punjab passed the following directions:
💰 Refund Order
- Refund of ₹11,83,150 to the complainant
📈 Interest
- Interest @ 10.80% (MLR + 2%) as per rules
⏳ Timeline
- Payment to be made within 90 days
🚫 Restrictions on Builder
- Builder restrained from selling or transferring the unit until dues are cleared
Significance of the Judgment
This ruling is important for several reasons:
✔ Protection of Homebuyers
Even after long delays, buyers can seek remedy under RERA.
✔ Rights of Subsequent Allottees
Re-allottees are equally protected under law.
✔ Strong Action Against Non-Responsive Builders
Ex-parte proceedings can be taken if builders fail to appear.
✔ Interest Compensation
Buyers are entitled not just to refund but also substantial interest.
- RERA Punjab: Complaints can be filed through the official Punjab RERA website for developer-related issues.
- GMADA: For infrastructure issues (lights, roads), complaints can be sent to Greater Mohali Area Development Authority (GMADA).
- Consumer Forum: For deficiency in service, a complaint can be registered at the State Consumer Disputes Redressal Commission, Punjab.
Conclusion
The RERA Punjab decision in the Shivalik Towers case reinforces that builders cannot escape liability due to delay or procedural lapses. Even after years of litigation, homebuyers are entitled to refund with interest, ensuring accountability in the real estate sector.
