Offering Possession Of Flat Without Occupation Certificate Is Illegal: Punjab RERA

The Punjab Real Estate Regulatory Authority (RERA) has recently ruled that a developer cannot legally offer possession of a flat without first obtaining mandatory statutory approvals and that extensions granted for project completion do not override the possession date promised to a homebuyer.

RERA Chairman Rakesh Kumar Goyal, while partly allowing a complaint against Omaxe Chandigarh Extension Developers Private Limited, said that “the extension in completion by RERA, Punjab, has no relevance and bearing on the date of possession mentioned in the 'Allotment Letter' issued to the allottee.”

He further held that any offer of possession without securing the required Occupation Certificates/Completion Certificate is “illegal and invalid in law.”

The complaint was filed by Kavita Marwah and Davinder Marwah, who booked a residential apartment in Omaxe's RERA-registered project “The Lake” at New Chandigarh.

Under a Buyer's Agreement dated July 30, 2015, possession was due by July 30, 2019. The couple paid Rs 73.53 lakh out of the total sale consideration of Rs 90.63 lakh. Despite this, possession was not handed over even years after the committed date.

The homebuyers alleged that Omaxe had offered possession without obtaining the mandatory statutory clearances and had failed to deliver the flat even after more than six years from the original promised date. This, according to the homebuyers, made them eligible for interest on delay.

Omaxe, however, contested the complaint. According to it, the delay was on account of alleged payment defaults by the buyers and force majeure events, including the COVID-19 pandemic. The developer also pointed out that Occupation Certificates had been obtained for other towers in the project and argued that extensions granted by RERA should be considered.

After reviewing the record, the Authority noted that while limited COVID-related extensions were granted, Omaxe had admittedly not obtained the mandatory statutory certificates for the complainants' unit.

Emphasising the prolonged delay, the authority observed that “since the construction has been delayed inordinately, therefore, as per provisions of Section 18, the complainant is entitled to claim interest for the period of delay.”

RERA directed Omaxe to hand over possession only after obtaining the required statutory approvals. It ordered the developer to pay Rs 46.99 lakh as delayed interest calculated up till December 31, 2025.

It also ordered the developer to continue paying monthly interest of Rs 66,186 from January 1, 2026, until valid possession is delivered.

Case Title: Kavita Marwah & Anr. v. Omaxe Chandigarh Extension Developers Pvt. Ltd.

Citation: 2026 LLBiz RERA (PB) 14

Complaint Number: GC No. 0446 of 2023

For Allottees/homebuyers: Advocate Eklavya Gupta

For Developer: Advocate Ashim Aggarwal