RERA & Builder-Buyer Dispute Lawyer Chandigarh, Panchkula | CBSL
RERA & Builder-Buyer Disputes — Refund, Delayed Possession & Interest
Chambers of BSL represents homebuyers and, where relevant, developers in disputes before the Real Estate Regulatory Authority (RERA) Punjab, RERA Panchkula (for Haryana projects), the Real Estate Appellate Tribunal, and the Punjab and Haryana High Court. The practice covers delayed possession claims, refund with interest, compensation for construction defects, and builder-buyer agreement disputes.
The Real Estate (Regulation and Development) Act, 2016 (RERA) gives homebuyers a direct, time-bound legal remedy against developers who fail to deliver possession on time, deviate from approved plans, or breach the terms of the builder-buyer agreement. Below is an overview of how these matters work, followed by frequently asked questions.
Which RERA Authority Applies to Your Project
This is the first thing to check, since the correct forum depends on where your project is located:
- RERA Panchkula Authority — covers real estate projects across Haryana, except Gurugram
- RERA Punjab Authority — covers projects in Punjab, including Mohali/SAS Nagar
- Unregistered projects — a complaint against an unregistered project in Punjab may still be maintainable; this is assessed on the facts of the project
Getting the forum right at the outset avoids delay and refiling.
Delayed Possession Claims
When a builder fails to hand over possession by the date committed in the builder-buyer agreement (or within the extended timeline permitted under RERA), the allottee has the right to either:
- Continue with the project and claim interest for every month of delay until possession is actually handed over, or
- Withdraw from the project and claim a full refund of the amount paid, along with interest, and compensation
What is examined in a delayed possession case:
- The committed possession date under the builder-buyer agreement
- Any registered extension or force majeure claimed by the developer
- Whether occupation certificate/completion certificate has actually been obtained
- Interest calculation from the due date of possession to the date of actual offer of possession or refund
Refund with Interest
Where an allottee chooses to withdraw from a delayed or stalled project, RERA entitles them to a refund of the entire amount paid to the promoter, along with interest at the rate prescribed under the applicable State RERA Rules, and compensation.
What this practice covers:
- Filing refund applications before RERA Panchkula or RERA Punjab
- Calculating the interest amount payable under the prescribed formula (State Bank of India’s highest marginal cost of lending rate plus a fixed percentage, as notified under the respective State Rules)
- Recovery proceedings before the Adjudicating Officer where the developer fails to comply with a refund order
- Execution of RERA orders, including attachment proceedings where necessary
Construction Defects & Structural Issues
Under Section 14 of the RERA Act, a promoter is liable to rectify structural defects or any other defect in workmanship, quality, or provision of services, without further charge, for a period of five years from the date of handing over possession.
What this practice covers:
- Filing complaints for structural defects, water seepage, and quality deviations from the sanctioned plan
- Claims for compensation where the promoter fails to rectify defects within a reasonable time
- Documentation and expert assessment support for defect claims
Builder-Buyer Agreement Disputes
Many disputes arise directly from the terms of the builder-buyer agreement itself — unilateral clauses, one-sided penalty terms, denial of possession on technical grounds, or disputes over carpet area and super area calculations.
What this practice covers:
- Reviewing builder-buyer agreements for unfair or one-sided clauses
- Challenging arbitrary cancellation of allotment by developers
- Disputes over carpet area discrepancies and consequent refund of excess amount charged
- Disputes relating to maintenance charges, club membership, and other ancillary charges bundled into the agreement
Appeals — Real Estate Appellate Tribunal
If either party is dissatisfied with an order of the RERA Authority or Adjudicating Officer, an appeal lies before the Real Estate Appellate Tribunal — for Haryana, this is heard at Chandigarh, and for Punjab, at Mohali.
Process overview:
- Filing of appeal within the limitation period prescribed under the RERA Act (typically 60 days from the date of the order, extendable in appropriate cases)
- Pre-deposit requirement — where the appellant is the promoter, a percentage of the amount due is typically required to be deposited as a precondition for the appeal to be heard
- Hearing before the Appellate Tribunal
- Further appeal, where applicable, before the High Court on a substantial question of law
Forums Where These Matters Are Handled
- RERA Panchkula Authority (Haryana projects)
- RERA Punjab Authority (Punjab/Mohali projects)
- Real Estate Appellate Tribunal, Chandigarh & Mohali
- Chandigarh State Consumer Disputes Redressal Commission (for builder disputes filed as consumer complaints instead of, or alongside, RERA)
- Punjab and Haryana High Court
Frequently Asked Questions
Can I claim both refund and compensation in a RERA complaint? Yes. An allottee who withdraws from a delayed project is entitled to a refund of the amount paid along with interest. Compensation for other losses — such as rent paid for alternate accommodation during the delay — can be claimed separately, and is generally decided by the Adjudicating Officer rather than the Authority.
What is the interest rate payable on delayed possession or refund under RERA? The interest rate is prescribed under the RERA Rules of the applicable State (Punjab or Haryana) and is generally linked to the State Bank of India’s highest marginal cost of lending rate, plus a fixed percentage. The exact applicable rate should be confirmed under the current notified Rules at the time of filing.
Can I file a RERA complaint if the project is not registered with RERA? This depends on the facts — in Punjab, a complaint against an unregistered project may still be maintainable in certain circumstances, while unregistered projects can also attract separate penal consequences for the developer under the Act. This is assessed case by case.
Is there a time limit for filing a RERA complaint? RERA does not prescribe a strict limitation period comparable to a civil suit for most complaints, but unreasonable delay in filing can still affect a complaint. It’s advisable to file as soon as the cause of action — such as a missed possession deadline — arises.
Should I file before RERA or before the Consumer Forum? Both forums can have jurisdiction over builder disputes involving deficiency of service, but RERA is a specialised forum built specifically for real estate disputes with time-bound disposal, while the Consumer Forum handles a broader category of consumer complaints. Which is more suitable depends on the specific facts, relief sought, and stage of the project.
Can I get possession instead of a refund if I don’t want to exit the project? Yes. An allottee who wishes to continue with the project despite the delay can seek an order directing the promoter to complete construction and hand over possession, along with interest for the period of delay, rather than opting for a refund.
This page is for general informational purposes only and does not constitute legal advice or solicitation. Outcomes in RERA and builder-buyer matters depend on the specific facts, agreement terms, and evidence in each case. For advice specific to your situation, please seek a consultation.
