Punjab RERA has directed Omaxe’s New Chandigarh project developer to pay over ₹56 lakh in interest to a homebuyer after rejecting the builder’s argument that the Covid-19 pandemic justified a multi-year possession delay. The ruling, dated July 19, 2026, found that the contractual possession deadline was June 2019 — nearly a year before pandemic-related restrictions came into effect in 2020. The Authority held that a force majeure event cannot be invoked to excuse a delay that had already commenced under normal conditions, setting a clear precedent for similar disputes. The homebuyer had entered into an agreement in 2015, paid a substantial portion of the ₹66 lakh consideration, and waited over seven years for possession. RERA also dismissed the developer’s arbitration clause defence, reaffirming its jurisdiction under Section 18(1) of the RERA Act regardless of contractual stipulations.
What this means for the trade: RERA authorities are taking a harder line on delay excuses — developer accounts with long possession backlogs are now more exposed to cash outflows through interest penalties, which can slow payment cycles to tile, sanitaryware, and finishing material suppliers on active projects.
