In a significant order protecting the rights of allottees, the Real Estate Regulatory Authority (RERA), Punjab has directed Bajwa Developers Limited to hand over possession of a commercial SCO (shop-cum-office) unit to two residents of Mohali, almost ten years after the buyers paid the full sale consideration and obtained a registered conveyance deed.
The order was passed on a complaint filed by Santosh Machagalath Krishnan and Nisha Puliyoth Nandanan, residents of Sector 125, Mohali, under Section 31 of the Real Estate (Regulation and Development) Act, 2016. The complaint related to the non-delivery of possession of SCO No. 178, admeasuring 62.22 square yards, situated in High Plaza Market, Sunny Enclave, Sector 124, Mohali.
Booking Details and Excess Payment by Buyers
As per the facts placed on record, the complainants booked the commercial unit on December 22, 2012, and an Agreement to Sell was executed on December 25, 2012. The total sale consideration for the SCO unit was fixed at ₹31 lakh. However, the buyers ended up paying a total amount of ₹36.48 lakh, which was more than 100% of the amount demanded by the developer.
Despite full payment, the complainants were compelled to wait indefinitely for possession, highlighting a clear case of developer delay and unfair trade practice.
Conveyance Deed Executed but Possession Withheld
A registered conveyance deed in favour of the complainants was executed on September 19, 2014, and the property was duly mutated in the revenue records. However, even after completing all financial and legal formalities, the developer failed to offer physical possession of the SCO unit.
The complainants further alleged that the promoter did not obtain the mandatory partial completion certificate or occupation certificate, in violation of Section 17 of the RERA Act, which obligates the developer to hand over possession along with all necessary approvals and documents.
Developer Proceeded Ex Parte for Non-Appearance
RERA Punjab issued notice to Bajwa Developers Limited, but despite proper service, the developer failed to appear before the Authority. As a result, the respondent was proceeded against ex parte on June 27, 2025.
The complainants submitted critical documents, including the agreement to sell, payment receipts, no-due certificate, approved layout plan, and the registered conveyance deed. Since the developer did not contest the complaint, the evidence produced by the buyers remained unrebutted and unchallenged.
Violation of Section 17 and Entitlement to Interest
During arguments, the counsel for the complainants emphasized that the promoter had clearly violated Section 17 of the RERA Act, which mandates timely delivery of possession and execution of completion-related certificates. The prolonged and unexplained delay, the counsel argued, entitled the buyers to interest for the delayed period on the entire amount paid.
The Authority agreed with the submissions, noting that the developer failed in its statutory obligations, despite receiving more than the agreed sale consideration.
RERA Punjab’s Final Directions
After examining the material on record and the unrefuted evidence, RERA Punjab held the complaint to be justified and issued the following directions:
• The developer shall offer possession of SCO No. 178 within three months from the date of the order, strictly as per the terms of the registered conveyance deed.
• The complainants shall take possession within one month from the date of receipt of the possession offer.
• The developer shall pay interest for the delayed period on the amounts paid by the buyers, at the rate prescribed under Rule 16 of the Punjab Real Estate (Regulation and Development) Rules, 2017.
Significance of the Order for Commercial Property Buyers
This order reinforces that RERA protections extend equally to commercial properties, including SCO units. It sends a strong message to developers that non-delivery of possession, even after execution of a conveyance deed, is a serious violation of law, and buyers are entitled to both possession and financial compensation for delays.
