In an important decision aimed at protecting homebuyers, the Punjab Real Estate Regulatory Authority (RERA) has ordered the Patiala Urban Planning and Development Authority (PDA) and developer M/s Omaxe Limited to pay interest to a buyer from Patiala for delay in handing over possession of a commercial property in their joint project.
The complainant, Anu Gupta, who is a resident of Delite Colony, Patiala, filed a case in December 2023. She stated that the developers failed to give possession of Shop-cum-Office (SCO) No. 46 in the “PDA-OMAXE City” project on Sirhind Road, Patiala, even after she paid the full amount of Rs 65,04,984.
The commercial site, measuring 120.24 square yards, was allotted to her through an auction in April 2010, and an official allotment letter was issued on July 16, 2010.
As per the allotment conditions, possession was to be handed over to the buyer within 30 days after completion of development work or after 50 percent payment, whichever came later. Gupta argued that the project remained incomplete because of disputes between PDA and Omaxe. These included a termination notice issued by PDA to Omaxe in 2011 for violating the Joint Development Agreement signed in 2006. She also said that a so-called “notional” possession offered to her on July 10, 2014, was not legally valid because the project lacked a completion certificate. Basic facilities such as roads, water supply, sewerage, and electricity were also missing. According to her, this caused financial loss and defeated her plan of self-employment. She also pointed out that several court cases related to the project were still pending in the Punjab and Haryana High Court.
PDA opposed the complaint and argued that RERA could not be applied to this old project. It claimed the project was not registered under RERA due to ongoing disputes. PDA further stated that possession was given to Gupta at her own request and that she had accepted it without any objection. The authority also maintained that all necessary facilities were available at the site. Omaxe took a similar stand, saying it was only a developer and not the main promoter. The company claimed that the delay was caused by legal issues and actions taken by PDA, which were beyond its control.
In the order passed on January 20, 2026, RERA Punjab Member-II Arunvir Vashista rejected the arguments of both respondents. He observed that RERA is a consumer-friendly law and can be applied even to older projects, as confirmed by the Supreme Court in the case of Newtech Promoters and Developers Pvt. Ltd. vs. State of U.P. (2021).
RERA accepted Gupta’s complaint and directed PDA and Omaxe to pay interest at the prescribed rate. The decision is likely to help many other buyers who have invested in the 336.5-acre PDA-OMAXE City project and are facing similar delays. When contacted, officials from PDA and Omaxe did not give any immediate response on whether they would challenge the order. Gupta’s lawyers welcomed the ruling and described it as a strong step toward protecting the rights of consumers.
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