Punjab RERA Orders Developer to Pay 11% Interest for Delay in Possession of Mohali Property
The Punjab Real Estate Regulatory Authority (RERA) has directed Jubilee Joy Homes LLP to pay interest to a homebuyer for failing to hand over possession of an independent floor within the originally agreed timeline.
The case relates to the Jubilee Coral Terraces project in Sector 120, Mohali, where homebuyer Ravinder Jit Kaur had booked a property for ₹59 lakh. Although the developer was contractually required to hand over possession by July 18, 2025, physical possession was not delivered within the stipulated period.
Punjab RERA held that the delay attracted the buyer’s statutory entitlement to interest under Section 18(1) of the Real Estate (Regulation and Development) Act, 2016.
Agreement for Sale Fixed Possession Deadline
Ravinder Jit Kaur had entered into an agreement concerning an independent floor in the Jubilee Coral Terraces project.
The agreed consideration for the property was ₹59 lakh, and the contractual possession deadline was July 18, 2025.
By the time the dispute came before RERA, the homebuyer had already paid approximately ₹44 lakh towards the property.
The central issue before the authority was whether the developer was liable to compensate the buyer for the period between the agreed possession date and the actual delivery of physical possession.
Developer Cited Payment Delays and Revised Timeline
During the proceedings, Jubilee Joy Homes LLP disputed the homebuyer’s claim.
The developer argued that part of the delay was attributable to payment defaults by the original allottee and subsequent transferees. It also contended that Kaur was aware of a revised possession timeline when she acquired the allotment rights in March 2025.
The developer further informed the authority that it had obtained the Occupancy Certificate on January 20, 2026, following which an offer of possession was issued.
According to the developer, however, the buyer had not cleared an outstanding amount of ₹18 lakh when the possession offer was made. It therefore sought to attribute at least part of the delay in final handover to the buyer.
RERA Examined When the ₹18 Lakh Became Payable
Punjab RERA did not accept the developer’s argument regarding the outstanding ₹18 lakh.
The authority examined the payment schedule and found that the amount was payable upon delivery of possession.
The records showed that Kaur subsequently paid the outstanding amount on February 19, 2026, after receiving a formal demand notice from the developer.
This distinction was significant because the developer could not rely simply on the existence of an unpaid balance to explain the failure to hand over the property by the original contractual deadline.
Original Possession Date Remained Relevant
The authority emphasized that the developer had failed to comply with the possession deadline of July 18, 2025.
Although the developer subsequently obtained the Occupancy Certificate on January 20, 2026, and issued an offer of possession, the property had still not been physically handed over to the buyer within the contractual period.
The regulatory authority therefore considered the period of delay from the original agreed possession date while determining the buyer’s entitlement to interest.
Section 18 of RERA Protects Homebuyers Against Possession Delay
Section 18(1) of the RERA Act provides protection to an allottee when a promoter fails to complete or is unable to give possession in accordance with the terms of the agreement for sale.
Where the allottee continues with the project, the statutory framework provides for interest for the period of delay until possession is handed over.
In this case, Punjab RERA applied Section 18(1) and held that the buyer was entitled to interest because the developer had failed to deliver physical possession within the agreed timeline.
Punjab RERA Orders 11% Interest on ₹44 Lakh
Punjab RERA directed Jubilee Joy Homes LLP to pay interest at the rate of 11% per annum on the ₹44 lakh deposited by the buyer.
The interest is to be calculated from July 18, 2025, the originally agreed possession date, until the date on which physical possession is actually delivered.
Thus, the liability is linked to the period during which the buyer was deprived of possession after the contractual deadline.
The developer has been given 90 days to comply with the order.
Further Penalties for Non-Compliance
Punjab RERA also warned that failure to comply with the directions could result in further penal consequences under Section 63 of the RERA Act.
The order therefore places an obligation on the developer not only to comply with the possession-related directions but also to meet the financial liability arising from the delay.
Why the Ruling Is Relevant for Homebuyers
The case highlights an important issue in delayed-possession disputes: obtaining an Occupancy Certificate does not by itself erase the delay that occurred after the contractual possession date.
The relevant question is whether the promoter actually complied with its obligation to hand over possession within the period agreed with the allottee.
In the present case, the developer obtained the Occupancy Certificate in January 2026, several months after the contractual possession deadline of July 18, 2025. Punjab RERA nevertheless considered the original contractual deadline while determining the buyer’s entitlement to interest.
The case also demonstrates the importance of examining the payment schedule before determining whether a buyer’s unpaid balance can be treated as a reason for delayed possession.
Here, the authority found that the ₹18 lakh balance was payable upon possession and that the buyer subsequently paid it after receiving the developer’s demand.
Key Takeaways for Homebuyers
Homebuyers facing delayed possession should carefully preserve the Agreement for Sale, payment receipts, demand letters, possession letters and correspondence with the developer.
The following dates can be particularly important in a delayed-possession dispute:
- Date of Agreement for Sale
- Contractual possession date
- Dates of payments made by the buyer
- Date of Occupancy Certificate
- Date of possession offer
- Date of actual physical possession
These records can help establish whether the promoter complied with the possession obligation and whether the buyer is entitled to interest under Section 18(1) of RERA.
The Punjab RERA ruling in the Jubilee Coral Terraces matter demonstrates that where possession is not delivered by the agreed deadline, the buyer may have a statutory claim for delay interest, subject to the facts and terms governing the particular transaction.
The Punjab RERA order involving Jubilee Coral Terraces, Sector 120, Mohali, reinforces the significance of the possession deadline recorded in the Agreement for Sale.
Despite the developer’s arguments concerning payment delays and a revised timeline, the authority found that the original possession commitment had not been fulfilled. It consequently directed the developer to pay 11% annual interest on ₹44 lakh from July 18, 2025, until physical possession is delivered.
The developer has 90 days to comply, with further consequences possible in case of non-compliance.
