Booked in 2020, Delayed Till 2024: Why a Builder Could Not Blame COVID-19

Two buyers applied for a flat in Godrej Meridien-I, Sector 106, Gurugram, on 29 June 2020, months into the pandemic. They were allotted Unit T2-0504 on 31 August 2020 and signed the agreement for sale on 5 November 2020, with possession promised by 30 September 2022. The occupation certificate came on 31 March 2023. The offer of possession came only on 13 May 2024. When they claimed delay interest, the builder pointed to COVID-19 and a six-month extension granted to projects because of it.

On 8 October 2026, Haryana RERA Member Phool Singh Saini rejected that defence. The booking, allotment and agreement were all made "after the effect of Covid", the order said, "and hence, grace period is not allowed to the respondent". Applying what it called the "well settled principle that a person cannot take benefit of his own wrongs", it awarded interest at 10.80% per annum from 30 September 2022 until two months after the offer of possession. For Bengaluru buyers who booked in or after 2020 and now hear COVID cited for delays, the reasoning is directly relevant.

The short answer. In Complaint No. 3893 of 2025, Haryana RERA held that a builder could not claim a COVID-19 grace period for a flat booked and agreed after the pandemic's effects had set in. It fixed the due date at 30 September 2022 under Clause 7.1 and ordered delay interest at 10.80% on the paid-up amount until 13 July 2024, two months after the 13 May 2024 offer. The trade-off for buyers: the interest stops two months after a valid offer, so delaying taking possession after that does not keep the meter running.

What happened in the Godrej Meridien-I complaint?

According to the Haryana RERA order in Complaint No. 3893 of 2025, the buyers' complaint was filed on 22 August 2025 and first heard on 16 October 2025. The project is Godrej Meridien-I in Sector 106, Gurugram, developed by Godrej Properties Limited. Under Clause 7.1 of the agreement for sale dated 5 November 2020, the builder assured possession "on or before 30.09.2022", and the Authority fixed that as the due date.

The occupation certificate was obtained on 31 March 2023, possession was offered on 13 May 2024, the registered conveyance deed was executed on 11 October 2024, and the buyers took physical possession on 27 November 2024. The Authority held that the builder failed to hand over possession within the agreed time, in contravention of Section 11(4)(a).

What did the builder argue?

As reported by LiveLaw, the builder blamed the pandemic and its second wave, shortages of labour and materials, and construction restrictions in the National Capital Region. It said construction bans had lasted 140 days and restrictions under the Graded Response Action Plan another 130 days. It relied on the Authority's six-month extension of project registrations on account of COVID-19, and argued that the agreement did not entitle the buyers to interest unless a breach was attributable to it.

The buyers' own complaint, as set out in the order, sought delay possession charges on Rs 1,44,35,753 paid towards the unit, excluding EDC, IDC and GST, and even framed one prayer as interest from the due date plus six months on account of the COVID-19 notification. The Authority went further than that prayer: having refused the COVID grace, it ran interest from 30 September 2022 itself.

Why did the COVID-19 defence fail?

The builder sought a six-month grace period on account of COVID-19, and relied on pandemic-era disruptions. The Authority's answer was about timing. It observed that "the booking application form as well as allotment letter had been issued by the respondent in favour of the complainant on 31.08.2020 and agreement for sale was executed between the parties on 05.11.2020, which is after the effect of Covid and hence, grace period is not allowed to the respondent".

The Authority also treated the pollution, water and labour restrictions the builder listed as short events of a kind the builder knew about, according to the LiveLaw report. In other words, a builder that signs an agreement in November 2020, knowing the pandemic's effects, cannot later rely on those same effects to stretch the date it chose. The Authority concluded that the builder "cannot be given any leniency on based of aforesaid reasons". Our earlier explainer on force majeure and registration extensions covers how such extensions are meant to work.

Why did the buyers get two extra months after the offer?

Section 19(10) of the RERA Act requires an allottee to take possession within two months of the occupation certificate. Here, the certificate came on 31 March 2023 but the offer came on 13 May 2024, more than a year later. The Authority reasoned that the buyers "came to know about the occupation certificate only upon the date of offer of possession", and so, "in the interest of natural justice", gave them two months from the offer.

That two-month window allows a buyer to "arrange a lot of logistics and requisite documents including but not limited to inspection of the completely finished unit", subject to the unit being habitable at handover. The result is that interest runs from 30 September 2022 to 13 July 2024, not just to the offer date of 13 May 2024. The condition matters: the extra time is linked to the unit being in habitable condition at handover, so a buyer who finds defects during inspection should record them in writing within that window.

What else did the Authority direct?

The builder must issue a revised statement of account after adjusting the delay possession charges within 30 days, and the buyers must pay any outstanding dues after that adjustment within the next 30 days. The builder was directed "not to charge anything which is not part of agreement for sale". The order also confirmed that the same 10.80% rate applies to any default by the allottee, under Section 2(za), so the arithmetic cuts both ways.

The buyers' complaint also sought delivery of other amenities promised in the agreement, including "Convenient Shopping", a "Community Building" and dedicated covered parking. The order's operative directions deal with delay interest, the revised statement of account and charges; buyers in similar positions should read their own agreement's amenity clauses and raise any shortfall separately in writing.

What should a Bengaluru buyer do if the builder cites COVID for a delay?

Bengaluru buyers who booked during or after 2020 can use the same questions the Authority asked. Our report on MahaRERA's ruling on registration extensions and withdrawal covers the related point that a registration extension does not automatically change your contract date. Work through this list.

1. Note the dates of your booking application, allotment letter and agreement for sale.
2. Compare those dates with the period the builder says was affected by COVID-19.
3. Read the possession clause to see whether it already allowed for a grace period and on what terms.
4. Ask the builder when the occupancy certificate was issued, not just when possession is being offered.
5. When an offer arrives, inspect the flat and complete formalities within two months.
6. Ask for a revised statement of account that adjusts delay interest against your dues.
7. Refuse charges that are not part of the agreement for sale, and ask for the clause if any are demanded.

How far does this order reach in Karnataka?

This is an order of the Haryana RERA Authority at Gurugram, so it is guidance rather than a Karnataka ruling. Karnataka's prescribed rate and extension history may differ. But the reasoning, that a party cannot rely on a known event to excuse a date it agreed to after that event, and that a buyer needs reasonable time after a late intimation of the occupancy certificate, can be raised before K-RERA on the same Act. The order also shows how much time can pass between an occupancy certificate and an offer: here, more than 13 months. Buyers told that a project is nearly ready should ask whether the certificate has already been issued, because Section 19(10) ties the two-month period for taking possession to that certificate. For advice on your own agreement, speak to a lawyer who handles RERA matters.

Frequently asked questions

Can a builder claim COVID-19 delay for a flat booked after the pandemic began?

Not according to Haryana RERA's 8 October 2026 order. Because the allotment on 31 August 2020 and the agreement on 5 November 2020 came after the effect of COVID-19, the Authority refused the builder a grace period, saying a person cannot take benefit of their own wrongs.

Until when does delay interest run in the Godrej Meridien-I case?

Interest at 10.80% per annum on the paid-up amount runs from the due date of 30 September 2022 until the offer of possession on 13 May 2024 plus two months, that is, until 13 July 2024, under Section 18(1) read with Rule 15 of the Haryana rules.

Why were two months added after the possession offer?

The occupation certificate was issued on 31 March 2023 but the buyers learned of it only with the offer on 13 May 2024. In the interest of natural justice, the Authority gave them two months from the offer to arrange logistics, documents and inspection, subject to the unit being habitable.

What must the builder do after the order?

The builder must issue a revised statement of account adjusting delay possession charges within 30 days and must not charge anything outside the agreement for sale. The buyers must then pay any remaining dues within the next 30 days, and the same 10.80% rate applies to any default by them.

Last updated 2026-11-15. PropNewz Team.