Punjab commission rules Omaxe possession offer without completion certificate invalid
The Punjab State Consumer Commission held that Omaxe New Chandigarh Developers' offer of possession without a completion certificate was not valid and ordered 9% yearly interest for the delay.
Key points
- The Punjab State Consumer Disputes Redressal Commission held Omaxe New Chandigarh Developers deficient in service over a delayed floor.
- The builder must pay 9% yearly interest on the buyers' payments from 7 December 2023 until it obtains the completion and occupancy certificates.
- The commission held that a possession offer without a completion certificate and promised amenities is not valid possession.
The State Consumer Disputes Redressal Commission, Punjab, on 6 November 2026 held that Omaxe New Chandigarh Developers Pvt. Ltd. was deficient in service for failing to hand over a floor in its Celestia Royal Chandigarh project on time. It ruled that the builder's offer of possession, made without a completion certificate, was not valid, and ordered 9% yearly interest on the buyers' payments.
What Happened
Two buyers booked a 2,550 sq ft independent floor in 2021 for Rs 1,07,45,259, partly with a State Bank of India home loan, and paid Rs 1,11,79,644.90 including taxes. The builder-buyer agreement promised possession by 31 July 2023. The builder obtained an occupation certificate on 30 November 2024 and offered possession on 29 January 2025, according to the order. It later sent a settlement deed offering Rs 1,52,580 for the delay, which barred legal action; the buyers refused it.
The commission rejected the builder's plea that Covid-19 delays excused it. It accepted that the buyers had paid some instalments late and allowed the builder 129 days' extension, moving the due date to 7 December 2023, but held that the possession offer did not count because the project had no completion certificate and lacked promised amenities. It held the company and its managing directors jointly and severally liable.
The builder must obtain the completion certificate, send a fresh offer of possession and hand over the floor with all amenities in the brochure. It must pay 9% yearly interest on the amounts paid, excluding taxes, from 7 December 2023 (and from later payment dates for later payments) until the certificates are obtained, plus Rs 22,000 as litigation costs. The order is the commission's finding and may be appealed.
What It Means
Homebuyers offered possession before a project has its completion certificate can rely on this ruling that such an offer may not stop delay interest from running. Buyers should check what certificates an offer letter mentions before signing a settlement that bars further claims. Help is available through the National Consumer Helpline (1915) or e-Daakhil.
Source: Consumer commission order
Sources & Citations
- Consumer commission order — Consumer commission