Case Hermitage Park Punjab RERA Complaint Ruling where it Directs Builder to Pay Delayed Possession Interest and Obtain Occupancy Certificate Before Handover.
In an important order dated 02 June 2026, the Punjab Real Estate Regulatory Authority (RERA) granted relief to a homebuyer facing prolonged delay in possession of a residential apartment. The Authority directed the promoter to obtain the requisite Occupancy/Completion Certificate, hand over lawful possession, and pay delayed possession interest under the RERA Act.
Complaints against The Hermitage Park in Dhakoli, Zirakpur (promoted by Paradigm Business Ventures, RERA Reg No. PBRERA-SAS79-PR0089) largely centered on delayed possessions and delivery of flats without obtaining the final Occupancy Certificate (OC). [1, 2]
Also Read-PARADIGM BUSINESS VENTURES Consumer Complaint
Key Punjab RERA Complaint Rulings & Precedents
- Mutual Settlement (2020-2024): In several major cases brought before the authority (e.g., Jagdish Chand Bansal v. Paradigm Business Ventures and subsequent matters), the regulatory body disposed of the complaints after both parties officially filed out-of-court mutual settlements. The Authority ruled that if the builder defaulted on the compromise, the allottees retained the right to revive the litigation. [1, 2, 3, 4, 5]
- Validity of Partial Completion: In disputes regarding possession being offered, the promoter previously maintained that flats in multiple towers (A, B, C, etc.) were offered after securing a valid partial Completion Certificate rather than a final OC. [1]
- Consumer Forum Parallels: In parallel consumer court disputes (Sunny Dhuria v. Paradigm Business Ventures) relating to the same project, buyers sought refunds and compensation for incomplete towers and lack of utility connections. Consumer Commissions dismissed the builder’s jurisdictional objections, affirming that RERA does not bar consumers from approaching District/State Consumer Dispute Redressal Commissions.
📌 Background of the Dispute
The dispute concerned a residential apartment booked in a RERA-registered housing project in Punjab.
According to the complaint:
- The apartment was allotted under a construction-linked payment plan.
- A substantial portion of the sale consideration had already been paid by the allottee.
- The Agreement for Sale prescribed a timeline for delivery of possession.
- Despite receiving significant payments, the promoter failed to hand over possession within the agreed period.
The allottee alleged that:
- Possession remained delayed beyond the contractual timeline.
- Occupancy/Completion Certificate had not been obtained.
- No compensation for delay had been paid.
⚖️ Promoter Did Not Dispute the Material Facts
During the proceedings, the promoter chose not to file a detailed reply and did not dispute the payment figures mentioned in the complaint. This became an important factor in the Authority’s consideration of the matter.
🏛 Punjab RERA’s Key Findings
🔹 Delay in Possession Attributable to the Promoter
The Authority observed that:
✔ The promoter failed to deliver possession within the timeline agreed in the Agreement for Sale.
✔ The statutory obligation under the RERA Act to hand over possession had not been fulfilled.
Consequently, the delay was held attributable to the promoter.
🔹 Homebuyer Entitled to Interest Under Section 18 RERA
Relying on Section 18 of the Real Estate (Regulation and Development) Act, 2016, the Authority reiterated that:
Where possession is delayed beyond the agreed date, an allottee who chooses to remain in the project is entitled to interest for every month of delay until lawful possession is handed over.
🔹 Occupancy Certificate Necessary Before Lawful Possession
Punjab RERA directed the promoter to:
✔ Obtain the requisite Occupancy/Completion Certificate from the competent authority.
✔ Thereafter issue a valid offer of possession and hand over lawful possession of the apartment.
The order reinforces the principle that:
Mere readiness of construction does not substitute the legal requirement of obtaining statutory approvals before possession.
💰 Interest Awarded for Delay
The Authority awarded delayed possession interest at:
📊 10.80% per annum
on the amount deposited by the allottee for the period of delay.
The Authority calculated delayed possession interest up to May 2026 at approximately:
💰 ₹13.37 lakh
and further directed payment of continuing monthly interest until a valid offer of possession is made.
🔹 Adjustment of Mutual Dues Permitted
An important clarification made by the Authority was that:
- Any amount payable by the allottee under the Agreement for Sale
- And any amount payable by the promoter under the RERA order
may be mutually adjusted at the time of possession.
Only the net balance would ultimately be payable by the concerned party.
🔹 Recovery as Arrears of Land Revenue
The Authority further held that:
✔ If the promoter fails to comply with the order within the prescribed period,
the awarded amount shall be recoverable as:
📜 Arrears of Land Revenue
under Section 40 of the RERA Act and the applicable revenue recovery mechanism.
The Authority also directed issuance of a Recovery Certificate in the event of non-compliance.
🧑⚖️ Why This Order Matters
This ruling is significant for homebuyers facing:
- Delayed possession
- Non-issuance of Occupancy Certificate
- Prolonged project delays
- Failure of promoters to honour possession commitments
The order reinforces a core RERA principle:
“A homebuyer is entitled not only to lawful possession but also to compensation in the form of interest for the period of unjustified delay.”
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