One-sided contract terms cannot defeat buyers' right to delay interest: Punjab RERA

Punjab RERA has ruled that a developer cannot rely on one-sided terms in a flat-buyer agreement to deny buyers interest for delayed possession, in a case involving a residential flat in New Chandigarh, Outlook Money reported on 20 May 2026.

The case

Bhupesh Rana and Ambika Rana signed an agreement in December 2021 for a flat with possession promised by 31 December 2022. They had paid ₹61 lakh when the developer issued a fresh demand for more than ₹26 lakh, without an occupation certificate and without offering compensation for the delay, according to the report. The developer is not named in the report.

What the Authority decided

• The developer's argument that the dispute should go to arbitration was rejected.
• Its claim that the buyers had defaulted on some payments was rejected.
• The buyers' right to interest for delayed possession stands even though the agreement had no clause providing for it, because the right comes from the RERA Act itself.

The report did not give the amount of interest awarded or the date of the order. We will link the order once we have located it on the Punjab RERA website.

Why it matters

Flat-buyer agreements in the Tricity often include arbitration clauses and penalty terms that favour the developer. This order is a reminder that buyers' rights under the RERA Act, 2016 apply regardless of what the agreement says. It is general information, not legal advice; take advice on your own agreement.