RERA Orders Omaxe to Pay ₹31.51 Lakh Interest for Delayed Flat Possession in Mohali

MOHALI, August 29, 2026: The Punjab Real Estate Regulatory Authority (RERA) has directed Omaxe New Chandigarh Developers Pvt Ltd to pay ₹31.51 lakh in delayed possession interest to a homebuyer after a six-year delay in handing over a flat at The Lake project in New Chandigarh.

The flat was originally due for possession by July 4, 2019, but the buyer received actual possession only on May 21, 2025.

RERA Orders 10.80% Interest for Delay

According to the order, the buyer had paid ₹50.75 lakh for the flat. RERA calculated interest at 10.80% per annum from August 1, 2019, to April 30, 2025, resulting in interest of ₹31,51,368.

The authority rejected the developer's arguments citing Covid-19 and alleged payment delays, noting that the original possession deadline had already expired before the pandemic began.

Buyer to Receive About ₹21.76 Lakh Net

The case also involved an additional 80 sq ft area for which the developer had demanded around ₹2.95 lakh. RERA limited the amount payable for this additional area to ₹1.82 lakh based on the rate agreed in the original agreement.

After adjusting the buyer's outstanding liability of around ₹9.75 lakh against the interest amount, the developer has been directed to pay approximately ₹21.76 lakh to the buyer.

 

Payment Deadline Set at 90 Days

Omaxe has been directed to make the payment within 90 days of receiving the order. If the amount is not paid, it can be recovered as arrears of land revenue.

Why It Matters for Homebuyers

The order reinforces that prolonged possession delays can result in substantial financial liability for developers. Homebuyers facing delayed possession should keep their buyer agreement, payment records and possession-related correspondence safely, as these documents can be important when seeking relief under RERA.