Promoter Liable for Delays: CG-RERA Order on Sejbahar Project

A recent order from the Chhattisgarh Real Estate Regulatory Authority has placed clear responsibility on a promoter for delays in a Raipur housing project. The authority has ordered interest payments to an allottee and directed further action over the project's lack of registration.

The project in question is 'Vatsalya Gaurav-1, Phase-1' at Sejbahar, Raipur. The promoter must pay Rs 6,87,496 as interest to the allottee. Until the project gets a completion certificate, the promoter must also pay Rs 7,314 every month.

Key Observations of the Authority

The authority observed that development work in the project did not match the approved layout. It also found that the project had not received a completion certificate from the competent authority.

Treating the project as incomplete and ongoing, the authority applied Section 18 of the Real Estate (Regulation and Development) Act, 2016, and ordered interest for the delay.

Interest Figures and Timeline

The interest of Rs 6,87,496 is to be calculated on the Rs 8,12,643 paid by the allottee. The annual rate used is 10.80 percent, covering the period from 2019 to October 2026.

From 1 November 2026, the monthly payment of Rs 7,314 will continue until the project receives its completion certificate.

Registration Violation Leads to Separate Case

The authority has treated the failure to register the project as a serious matter. The order notes that eligible projects are mandatorily required to register under Section 3 of the Act.

Since the project was not registered, the authority has directed that a separate case be filed against the promoter under Section 59 of the Act.

No Exit Through Plot Sales

The authority has made it clear that selling plots does not relieve a promoter of legal duties. Roads, drains, electricity, drinking water and other development works must be completed according to the sanctioned layout, and the promoter must secure the necessary certificates from the competent authority.