Last Updated on March 19, 2026 by Satish Mishra
RERA Punjab Orders Interest for Delay in Possession: Builder Held Liable Despite Completion Claim in HLP Infratech Palmillas Zirakpur Complaint.
Complaints against HLP Infratech’s “HLP Palmillas” project in Zirakpur, Punjab, have been filed with Punjab RERA, primarily regarding delays in handing over possession of residential plots (e.g., agreed possession dates in 2023 not met). Complainants often seek interest or refunds due to project delays.
In a recent decision dated 09 March 2026, the Punjab Real Estate Regulatory Authority (RERA) held the builder liable for delay in handing over possession and directed payment of interest to the allottee.
The case highlights the strong protection available to homebuyers under Section 18 of the RERA Act, 2016.
📄 RERA Punjab – HLP Infratech LLP Case (Decision dated 09.03.2026)
📌 HLP Infratech Palmillas Zirakpur
- Project: HLP Palmillas, Zirakpur (Mohali)
- Builder: HLP Infratech LLP
- Plot Price: ₹34 lakhs
- Possession Deadline: 31.05.2023
The complainant had already paid approximately ₹31.5 lakhs, but possession was not delivered even after nearly 3 years of delay.
As seen on page 1 of the order, the complaint was filed under Section 31 of the RERA Act seeking:
- Possession of the plot
- Interest for delayed possession
⚖️ Builder’s Defence
The builder argued that:
- The project was complete in all respects
- Application for Completion Certificate was already filed (02.09.2024)
- Delay was due to authorities, not the builder
Hence, they claimed no liability for delay.
🏛 RERA’s Key Findings
🔹 Delay in Possession Clearly Established
RERA observed (page 3–4):
- Possession was not delivered as per agreement
- No clear timeline was provided by the builder
- Buyer was made to wait indefinitely
The Authority held:
The project cannot be treated as complete without possession being offered with proper approvals.
🔹 Completion Certificate Argument Rejected
RERA rejected the builder’s defence that delay was due to authorities:
- Mere application for completion certificate is not sufficient
- Possession must be offered after obtaining OC/CC
Thus, delay was attributable to the builder.
🔹 Section 18 RERA – Buyer’s Right to Interest
RERA emphasized (page 4):
- Right to claim interest for delay is a statutory right
- It is an indefeasible right of the allottee
- Violation of Section 18(1) was clearly made out
💰 Final Order
RERA held:
- Builder is liable for delay
- Complainant entitled to interest
Interest Awarded:
- Rate: MCLR + 2% (as per Punjab RERA Rules, 2017)
- Period: From 31.05.2023 (due date) till valid offer of possession
- Condition: Possession must be offered only after obtaining OC/CC
The Authority also directed timely payment of interest as per statutory rules (page 5).
📌 Key Legal Takeaways
✔ Delay beyond agreed possession date = Builder liability
✔ Completion certificate application ≠ valid possession
✔ Interest under Section 18 is a legal right, not discretionary
✔ Builder cannot shift blame to authorities
✔ Buyer cannot be forced to wait indefinitely
🧑⚖️ Why This Judgment Matters
This ruling reinforces a crucial principle:
“Until lawful possession is offered with approvals, delay continues.”
It strengthens the position of homebuyers and ensures developers remain accountable for timelines promised in agreements.
- Project Location: Village Ramgarh Bhudda, Zirakpur, District SAS Nagar, Mohali.
- Common Issues: Delay in possession (Clause 7.1 of sale agreement).
- Legal Action: Complaints are filed under Section 31 of the RERA Act, 2016, with the Real Estate Regulatory Authority, Punjab.
- Filing a Complaint: Complaints can be filed online via the official Rerafiling by registering as a user.
- Dispute Resolution: Some cases against HLP Infratech have been withdrawn following amicable settlements.
- Project Location: Village Ramgarh Bhudda, Zirakpur, District SAS Nagar, Mohali.
- Common Issues: Delay in possession (Clause 7.1 of sale agreement).
- Legal Action: Complaints are filed under Section 31 of the RERA Act, 2016, with the Real Estate Regulatory Authority, Punjab.
- Filing a Complaint: Complaints can be filed online via the official Rerafiling by registering as a user.
- Dispute Resolution: Some cases against HLP Infratech have been withdrawn following amicable settlements.
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