Chandigarh consumer commission orders Omaxe to hand over delayed flat, pay 9% interest

The State Consumer Disputes Redressal Commission, U.T., Chandigarh, has ordered Omaxe New Chandigarh Developers Pvt. Ltd. to hand over a delayed flat to a homebuyer within two months and pay 9% a year as compensation for the delay. In an order dated 15 October 2026, the commission held the developer deficient in service and guilty of unfair trade practice.

What Happened

The homebuyer booked a 2,300 sq ft flat in the developer's project "The Lake" at Mullanpur, District SAS Nagar, Punjab, in 2018 and paid Rs 58.07 lakh. Under the agreement, possession was due by 31 July 2021, but per the order, it had not been offered even when arguments were heard.

The developer cited COVID-19 as force majeure, an event beyond its control. The commission allowed a nine-month extension in line with a 2020 central government office memorandum, which pushed the due date to 30 April 2022. It found that the developer produced no progress report or other evidence to explain the delay after that date.

The commission rejected the argument that the buyer was an investor, holding that owning another property does not by itself make a purchase commercial. It held that the complaint was within time because failure to deliver possession is a continuing wrong. It also held that the company's directors are jointly and severally liable with the company.

What It Means

The developer must hand over the flat, complete and with occupation and completion certificates, within two months of receiving the order, on payment of the balance price as per the agreement and without delayed payment charges. It must pay 9% a year on the amount received for 30 April 2022 to 30 September 2026 within 30 days, failing which that sum will carry 12% interest. From 1 October 2026 it must pay 9% a year monthly, by the 10th of the following month, until possession. It must also pay Rs 75,000 as compensation and Rs 35,000 as litigation costs. The order may be appealed.

For homebuyers facing long delays, the ruling shows that a COVID-19 extension is limited and that a developer must prove reasons for further delay. Homebuyers can seek help through the National Consumer Helpline (1915) or e-Daakhil.

Source: Consumer commission order