The Punjab Real Estate Regulatory Authority (RERA) has allowed a Zirakpur-based builder only four months’ relief on account of the Covid-19 pandemic, against the six months it had sought. The Authority directed the developer to pay interest at 10.95 per cent per annum to Chandigarh-based allottee Arvind Kumar Pal on the amount paid by him towards the flat.Allowing Pal’s complaint under Section 31 of the Real Estate (Regulation and Development) Act, 2016, RERA Member Binod Kumar Singh held that the allottee was entitled to interest under Section 18(1) of the Act for the delay in handing over possession. The complainant was represented by advocate Shikha Khullar.The Authority noted that Pal was allotted a unit on the third floor of a plot in Sushma Valencia, situated at Nagla village Zirakpur through an allotment letter dated February 8, 2019. The agreement for sale was executed on March 19, 2019, stipulating December 18, 2021, as the date for handing over possession, subject to force majeure conditions.The allottee paid Rs 45,44,060 against the basic sale price of Rs 47,83,200. Recording that the buyer had paid more than 95 per cent of the sale consideration, the Authority observed that “despite making more than 95 per cent of the sale consideration, the complainant was not given possession of the flat.”The developer had contended that the delay was attributable to circumstances beyond its control, particularly the Covid-19 pandemic, which had affected construction activity. Claiming that the pandemic constituted a force majeure event, it sought six months’ exemption from interest liability, relying on extensions granted by various consumer commissions and RERA authorities.The developer had also submitted that it issued an offer of possession on May 31, 2021, accompanied by a demand for Rs 4,17,631, and that its application for a completion/occupation certificate had been submitted to GMADA on June 6, 2023. The complainant, however, had informed the Authority that the District Consumer Disputes Redressal Commission, Chandigarh, had directed the developer to withdraw the earlier letter of possession offer issued without obtaining the occupation/completion certificate.The consumer commission had also awarded Rs 50,000 as compensation for mental agony and harassment and Rs 10,000 towards litigation costs, but no interest for delayed possession had been granted (Para 7.2).Rejecting the plea for a six-month exclusion, the Authority relied on the Real Estate Appellate Tribunal, Punjab’s August 22, 2022, decision in another matter. It held that “a benefit of at least four to five months on account of force majeure should be afforded to the developer to absolve him of the liability of completing the projects within the timeline prescribed”.Applying the ruling, the Authority observed: “In view of above position, the period of four months of force majeure has to be excluded from the period of delay in handing over possession to the complainant, order accordingly.”Directing the developer to issue a fresh offer of possession in writing only after obtaining the completion certificate from the competent authority, the Authority ordered it to pay interest at 10.95 per cent per annum on Rs 45,44,060 from December 18, 2021, the agreed date of possession, till November 5 – the date of order – after excluding four months on account of force majeure.The amount was directed to be paid in the first instance within 90 days from the date of receipt of the order, with the developer required to submit a compliance report to the Authority regarding release of the interest amount.The developer was further directed to pay interest at the same rate on Rs 44,45,060 from the date of the order until actual possession or two months after obtaining the completion certificate from the competent authority and offering possession, whichever was earlier.The Authority warned that failure to submit the compliance report within the stipulated 90 days or non-compliance with its directions could attract penalty under Section 63 of the 2016 Act. The complainant was also directed to inform the Authority about receipt of the amount along with interest.