SRG Developers: Punjab RERA Awards ₹14.30 Lakh Interest for Delayed Possession. You can file a complaint against SRG Developers & Promoters through the Real Estate Regulatory Authority, Punjab portal for issues like delayed possession in projects such as Marbella Grand in Mohali.

The Punjab Real Estate Regulatory Authority has passed an important order concerning delay in delivery of possession, holding a real estate promoter liable to pay interest to the allottees for the period during which possession remained delayed beyond the contractual date.

The Authority also clarified that once a valid offer of possession is made pursuant to the requisite statutory approvals, the promoter’s liability to pay delay interest comes to an end and the allottee becomes liable to pay maintenance charges in accordance with the Agreement for Sale in SRG Developers RERA Complaint.

SRG Developers RERA Complaint -Background

The allottees had booked a residential unit in the Marbella Grand project at Sector 82 Alpha, IT City, Mohali.

The Agreement for Sale was executed on 25 March 2021, under which possession was to be handed over on or before 31 March 2024.

The allottees had paid approximately ₹88.27 lakh, including GST, towards the sale consideration. However, possession was not offered by the contractual deadline.

Developer’s Defence: COVID-19 Extension

The promoter sought to rely upon the COVID-19 extension of six months, contending that the delay was attributable to circumstances beyond its control and delays in obtaining statutory approvals.

The Authority, however, rejected the plea.

It observed that the relevant COVID-19 relaxation notification applied to the period between March 2020 and September 2020, whereas the Agreement for Sale itself was executed only on 25 March 2021.

Therefore, the promoter could not claim the benefit of the six-month COVID extension while calculating the contractual date of possession.

Contractual Possession Date Remained 31 March 2024

The Authority accordingly held that the contractual obligation to hand over possession matured on 31 March 2024.

Failure to fulfil that obligation gave the allottees a cause of action from 1 April 2024 under Section 18 of the RERA Act.

The subsequent grant of statutory approvals did not retrospectively alter the contractual possession date, although those approvals became relevant for determining the period up to which delay interest was payable.

Also Read-TDI Infracorp State Commission Haryana Complaint

Valid Possession Offered in October 2025

During the pendency of the complaint, the promoter obtained a Partial Completion Certificate dated 8 October 2025 for the relevant tower.

Thereafter, an Offer of Possession dated 11 October 2025 was issued to the allottees, followed by an Occupation Certificate dated 31 October 2025.

The Authority held that the subsequent statutory approvals and the valid offer of possession meant that the promoter’s liability for delay interest would be calculated only up to 30 September 2025.

Interest Under Section 18 RERA

Since the promoter had failed to deliver possession by the contractual date, the Authority held that the allottees were entitled to delay interest under Section 18 of the RERA Act.

The Authority applied an interest rate of 10.80% per annum, comprising the applicable SBI Highest MCLR plus 2%, in accordance with Rule 16 of the Punjab State Real Estate (Regulation and Development) Rules, 2017.

The interest was calculated on the amount paid by the allottees for the period from:

1 April 2024 to 30 September 2025.

The total interest awarded for the delayed period was approximately ₹14.30 lakh.

Maintenance Charges Become Payable After Valid Possession

Another significant aspect of the order concerns maintenance charges.

The allottees had disputed their liability to pay maintenance charges.

The Authority held that the obligation of an allottee to pay maintenance charges commences upon a lawful offer of possession.

Since the offer dated 11 October 2025 was found to be valid, the allottees were directed to complete the possession formalities and become liable for maintenance charges from that date in accordance with the Agreement for Sale.

Interest and Possession: A Clear Cut-Off

The order therefore establishes a practical distinction:

Before valid possession:
The promoter remains liable for delay interest under Section 18.

After valid offer of possession:
The promoter’s delay-interest liability comes to an end, while the allottee’s contractual obligations, including maintenance charges, come into operation.

The Authority specifically held that the amount of interest payable to the allottee and any amount payable by the allottee towards the balance sale consideration were to be mutually adjusted, with only the net balance being payable by the respective party.

Also Read-Emerging Heights-III Consumer Case Judgment Digest

Recovery as Arrears of Land Revenue

The order also contains strong enforcement directions.

The Authority held that the amount of ₹14,30,064, representing interest for the delayed period, constituted an amount recoverable under Section 40(1) of the RERA Act as arrears of land revenue.

The Secretary of the Authority was directed to issue a Recovery Certificate after the prescribed period for recovery through the competent revenue authorities.

Key Takeaways

• The contractual possession date remains important for determining RERA delay.
• A promoter cannot automatically claim a COVID-related extension where the contractual arrangement itself was entered into after the relevant COVID period.
• Subsequent statutory approvals do not erase delay already accrued.
• A valid offer of possession can determine the cut-off date for delay interest.
• Under Section 18 RERA, an allottee can claim interest for the period of delayed possession.
• Once lawful possession is offered, maintenance obligations may commence in accordance with the Agreement for Sale.
• Interest awarded by the Authority can be recovered as arrears of land revenue under Section 40(1) RERA.
• Amounts payable by the promoter and allottee can, where directed, be mutually adjusted.

Case Context & RERA Rulings

Conclusion

The Punjab RERA order in the SRG Developers/Marbella Grand matter reinforces the principle that contractual possession timelines carry significant legal consequences under RERA.

A promoter cannot rely upon an inapplicable COVID extension to escape liability for delay. At the same time, once the required statutory approvals are obtained and a legally valid offer of possession is made, the calculation of delay interest comes to an end.

The order therefore provides a useful framework for determining when delay interest begins, when it ends, and when the allottee’s obligation to pay maintenance charges commences.

By Satish Mishra, Advocate (99888-17966)