Builder cannot escape delay liability through no-dues certificate: RERA

Builder Cannot Avoid Delay Liability via No-Dues Certificate: RERA

Builder cannot escape delay liability through – RERA has clarified that developers cannot use post-possession documents like no-dues certificates to absolve themselves of responsibility for delayed project handover. The ruling was delivered in response to a complaint by Maj Gen Navraj Dhillon and Ashima Dhillon of Panchkula, with legal representation from Sanjeev Gupta and Ripudaman Singh.

Case Overview

The complainants purchased a 350-square-yard residential plot at ATS Golf Meadows-I, Dera Bassi, in January 2015. The agreement outlined a possession deadline by January 17, 2018, but the developer only handed over the property on May 5, 2025. The allottees claimed 10.8% annual interest on ₹47 lakh from the stipulated date and challenged additional charges imposed during the delay.

Developer’s Argument

Ats Estates Private Limited defended itself by asserting that the transaction concluded upon registration, citing documents signed by buyers post-possession. These included a discharge-cum-no-dues certificate and a consent letter, which the company argued legally ended the claim for delays.

Rejecting this stance, the authority stated that the Real Estate (Regulation and Development) Act of 2016 is a protective measure for allottees. It emphasized that any clause contradicting the Act’s provisions is invalid, referencing Supreme Court rulings that describe RERA as a retroactive law prioritizing consumer rights.

RERA’s Decision

The regulatory body determined that the developer failed to deliver the property on time, with the delay acknowledged and unexplained. As a result, ATS Estates was ordered to pay interest on ₹47 lakh from January 17, 2018, to May 5, 2025, and on the remaining ₹19.41 lakh from each payment date until possession was finalized. The company has 90 days to comply with the ruling and submit a compliance report to RERA.