Punjab RERA: villa buyer who stopped paying loses claim to possession, but gets ₹40 lakh back with interest

The Punjab Real Estate Regulatory Authority (RERA) has held that a buyer who did not pay his instalments for a villa cannot claim possession, but is still entitled to get back what he paid, with interest. LiveLaw Business reported the order on 6 October 2026.

The order, dated 30 September 2026, was passed by Member Binod Kumar Singh in Vikas Gupta v. IREO Waterfront Private Limited and AIPL Housing & Urban Infrastructure Limited (Complaint GC No. 0570 of 2022).

The facts

According to the report:

• Gupta was allotted Villa No. 566 (Type L, 1,600 sq ft built-up) at IREO Waterfront on 16 May 2014, for a total price of ₹1,30,48,522.
• The builder-buyer agreement of 30 June 2014 promised possession by 30 June 2016.
• He paid ₹40 lakh in total, his last payment being on 29 May 2015. ₹7,53,269 of the second instalment was left unpaid despite reminders.
• On 18 February 2016 the developers sent a "final opportunity" letter warning that the allotment could be cancelled.
• A partial completion certificate for the relevant pocket came on 29 November 2017. Gupta filed his complaint on 1 December 2022, seeking possession or another unit at the original price, plus delay interest.

What RERA decided

The Authority found that the buyer had "failed its obligation to make the payment as per Builder Buyer agreement" and so had "failed to establish any enforceable entitlement to possession under Section 18" of the RERA Act.

It did not, however, let the developers keep his money. It held that "the only amount refundable to complainant is Rs.40,00,000/- along with interest as per Section 18(1)". It directed a refund of ₹40 lakh with interest at 10.80% a year from the date of each payment until the date of refund, with both companies jointly and severally liable. The complaint was partly allowed.

What it means for buyers

Two lessons come out of this order. Missing instalments can cost a buyer the right to insist on the unit, even when the project itself is late. But a developer who has not formally cancelled and forfeited under the agreement may not be able to keep the money already paid.

Keep records of every payment, demand letter and reminder. If you cannot pay, raise it with the developer in writing. To check a project's registration and progress before you buy, see how to check a project on Punjab RERA. This is general information, not legal advice. The order can be appealed.