Consumer commission orders Omaxe unit to pay 9% interest to homebuyer for delay
The Chandigarh State Consumer Commission held that Omaxe New Chandigarh Developers' offer of an incomplete flat was not valid possession and ordered 9% interest for the delay.
Key points
- The Chandigarh State Consumer Disputes Redressal Commission ruled against Omaxe New Chandigarh Developers on 3 November 2026.
- It ordered 9% yearly interest on the buyer's payments from 30 September 2024 to 25 January 2026, plus Rs 75,000 compensation and Rs 35,000 costs.
- The commission held that an offer of possession of an incomplete flat does not end a builder's liability for delay; the order may be appealed.
Photo: MaxnaCarta / Wikimedia Commons, CC BY-SA 4.0 (cropped). Representational image.
The Chandigarh State Consumer Disputes Redressal Commission has ordered Omaxe New Chandigarh Developers Private Limited to pay a homebuyer interest at 9% a year on the full amount paid for a flat, from 30 September 2024 to 25 January 2026, for delayed possession. In its order of 3 November 2026, the commission also awarded Rs 75,000 as compensation and Rs 35,000 as litigation costs.
What Happened
According to the order, the homebuyer booked a flat in the developer's "Celestia Royal Plus" project in New Chandigarh, Mohali, in June 2021. The agreement for sale required possession by 30 September 2024. Against a unit price of Rs 1,17,08,672, the buyer paid Rs 1,20,42,930 in total.
The developer issued an offer of possession on 13 September 2024 and argued that this was within the agreed date. The commission held that the offer was not valid because the flat was incomplete. It noted that painting, an RO system, wooden flooring, fans and lights, and seven promised air conditioners were still pending in June 2025, and that the air conditioners were installed only in January 2026. The buyer, who was paying Rs 23,000 a month in rent, took possession on 20 June 2025.
The commission rejected the developer's objection that the buyer was an investor and not a consumer, holding that the developer had offered no evidence for it. It held the company and three of its officers jointly and severally liable.
The interest must be paid within 30 days of receiving a certified copy of the order, failing which the accumulated amount carries interest at 12% a year. The compensation and costs are also due within 30 days, or they carry 9% interest. The order may be appealed.
What It Means
The commission held that an offer of possession or an occupation certificate does not by itself end a builder's liability for delay if the flat is not complete to the agreed specifications. It also held that a buyer who takes possession of an incomplete flat to escape rent does not give up the claim for delay compensation.
Homebuyers facing a delay can file a consumer complaint through e-Daakhil or call the National Consumer Helpline on 1915.
Source: Consumer commission order
Sources & Citations
- Consumer commission order — Consumer commission