Contract Terms Cannot Defeat Buyers’ Rights: Punjab RERA

In a recent ruling, the Punjab Real Estate Regulatory Authority (RERA) has ruled in favour of the homebuyers' right when developers make a delay in possession. In most cases, developers deny this right when the buyers claim it, mostly under contractual clauses set by them. This decision strengthens the homebuyers under the Real Estate (Regulation and Development) Act, 2026, which further reinforces the legal remedies under RERA to take a stand in private agreements.

The ruling came in a complaint filed by homebuyers Bhupesh Rana and Ambika Rana regarding their purchase of a residential flat in New Chandigarh, as stated by LiveLawBiz. The buyers made an agreement in December of 2021, which promised the possession of the flat to be delivered by December 31, 2022.

The couple had already paid Rs 61 lakh to the builder for the bought unit. However, the developer had failed to hand over the possession within the timeline decided. Aside from this, the builder also issued a fresh notice of over Rs 26 lakh without providing the occupation certificate or providing compensation for the delayed possession. This led the buyers to approach the housing body, Punjab RERA, to seek interest for the delay and other reliefs.

What Role Does RERA Play Here?

Under the RERA, developers face stricter scrutiny and penalties for missing the deadlines for how their projects unfold. This is a change that has tilted the balance of power towards the buyers; builders are now put under a strict radar if they don’t comply with the timelines. The buyers are also compensated if the delays occur. In simpler terms, this reduces the financial and emotional pain of waiting for their investments to be handed over.

Another is the updated frameworks, RERA extends its scope of regulation to the unregistered and old projects. This ensures that buyers who are grieved by older or partially completed projects are also protected. While also ensuring that developers can’t bypass the regulations, exploiting the loopholes by technicality. This allows a larger segment of the housing market to be under the RERA compliance, irrespective of their registration status. So, if the couple had even invested in a project that was unregistered, they would be protected under RERA regulations.

How It Unfolded?

The developer argued that the dispute referred to arbitration because the agreement contained so. The developer also mentioned that the couple had defaulted on a few payments, which resulted in a delay.

Punjab RERA proceeded to dismiss all these arguments. The real estate body also emphasised how the law grants the homebuyers the right to claim interest if the possession is delayed, and it can’t be ignored because the agreement lacked the provision.

Sam Chopra, President & Country Head, eXp Realty India, adds, “When a builder delays possession, Indian law offers homebuyers multiple remedies to protect their interests. Under the Real Estate (Regulation and Development) Act (RERA), buyers are entitled to seek compensation for the delay or exit the project with a full refund and interest, depending on their preference and contractual terms.”

This ruling is significant as it reaffirms that builders can not just rely on one-sided contracts to protect them. There are guidelines every step of the way to protect the homebuyer from such instances taking place.