Punjab RERA: A Deed Recording Possession Defeated a Delay Claim, So Check Clearances First

On 15 June 2021, a buyer of a 100 square yard plot in the Suraksha Enclave Township (Bella Vista-2) project at Derabassi, near Mohali, signed a conveyance deed. Clause 3 of that deed recorded that she had received and accepted physical possession. Four years later, she went to the Punjab Real Estate Regulatory Authority saying she had been pushed into signing before the developer had a completion or occupation certificate, and asked for delay interest. The authority dismissed the claim. Its reason, and the advice it added, are worth knowing before you sign anything at handover in Bengaluru.

The order, in GC No. 0358 of 2025 against Phenomenal Construction Private Limited and Suraksha Enclave Ipan Real Estate Private Limited, was passed by Member Binod Kumar Singh and reported by LiveLaw on 29 October 2026. It comes from another state's regulator, so treat it as a guide rather than a rule for K-RERA. This is buyer guidance on a reported order, not legal advice.

The short answer. Punjab RERA found that possession was due by 20 September 2021 and that the conveyance deed, executed on 15 June 2021, recorded that physical possession had been delivered and accepted. So there was no delay, and no interest under Section 18 arose. It disposed of the complaint but gave the buyer liberty to seek compensation for any deficiency in service before the competent authority. It also said it is "always advice able" to take possession only when the builder has all clearances, including an occupation or completion certificate. The trade-off: signing a deed and taking possession early ends the waiting, but the deed's own words can later be used against a delay claim, so check clearances before you sign.

What did Punjab RERA decide?

That there was no delay. According to the report, the authority examined the agreement and the conveyance deed. Possession was due on 20 September 2021, 24 months after the builder-buyer agreement of 20 September 2019. The deed was executed on 15 June 2021 and recorded that physical possession had been delivered to and accepted by the buyer. The authority said: "Since the promoter has completed his obligation and executed deed in respect of plot in favour of the complainant and in conveyance deed it is specifically mentioned that the physical possession has been handed over. Then there no doubt about genuineness of possession."

It concluded that interest under Section 18 did not arise, disposed of the complaint for lack of merit, and granted the buyer liberty to seek compensation before the competent authority for any deficiency in the developers' services.

What did the buyer argue?

That possession was not lawful. The report says the buyer alleged the developers failed to offer lawful possession and compelled her to execute a conveyance deed without obtaining the mandatory completion or occupation certificate. She argued that executing a conveyance deed did not extinguish her statutory rights, and relied on decisions on compensation for delayed possession and agreements allegedly signed under pressure. She sought interest on the Rs 10.35 lakh paid until lawful possession after clearances, physical and legal possession, a penalty under Section 61 and Rs 1.5 lakh in costs.

The developers replied that Clause 21 of the agreement gave 24 months for possession plus a six-month grace period, that the deed was executed before the deadline and recorded possession, and that the project had essential infrastructure including water supply and a sewerage system.

This was a plotted development rather than an apartment, which affects what a buyer should check. For a plot, the developer's claims about roads, water supply and sewerage are part of what makes the land usable, and the certificates that matter may relate to the layout as a whole. A Bengaluru buyer of a plot should ask which approvals and certificates apply to the layout before accepting that it is complete.

Why did the deed matter so much?

Because it recorded possession in the buyer's own signed document. The authority relied on Clause 3 of the conveyance deed, which recorded that the buyer had received and accepted physical possession. Once the deed was executed before the possession deadline and said possession was handed over, the authority saw no doubt about the genuineness of possession, and no delay to compensate through interest.

For a buyer, the lesson is that handover documents are not formalities. A clause acknowledging possession can be read against you later, even if you believe the project lacked clearances at the time. If you have concerns at handover, record them in writing before or when you sign, not years afterwards.

What advice did the authority give?

To wait for clearances. The authority observed: "It is always advice able that possession of plot/unit should be taken when the builder has all clearance from competent authority including occupation certificate/completion certificate." It did not decide whether clearances were in place here, because it found no delay on the deed's terms, and it left the buyer free to pursue compensation for deficiency in service elsewhere.

That advice fits with other rulings we covered today. A Haryana RERA order said a valid offer of possession needs an occupation certificate, a habitable unit and no unreasonable demands; see our guide to the three tests for a valid possession offer. And Karnataka's appellate tribunal treated an occupancy certificate as effective only once violations were shown to be cured; see our report on the Casa Grande Lorenza ruling.

Does it matter how long a buyer waits to complain?

The report does not say the authority relied on the time taken. Its reasoning rested on the deed and the possession date. But the timeline is still instructive. The deed was signed on 15 June 2021, the legal notice went out on 21 June 2025, and the complaint was filed on 4 September 2025. By then, the deed's recital of possession had stood unchallenged for four years, and the buyer's account that she had been compelled to sign was set against a document she had executed.

A buyer who believes possession is being forced before clearances are in place is better placed by saying so at the time, in writing, than by raising it years later. A contemporaneous letter or email, even a short one, creates a record that can be weighed against a deed's wording. Without it, the deed may be the clearest evidence of what happened on the day.

Does a buyer lose everything by signing early?

Not necessarily. In this case the authority dismissed the delay interest claim but expressly granted liberty to seek compensation for any deficiency in the developers' services before the competent authority. So a deed acknowledging possession closed one route on these facts, not every route. Whether a compensation claim succeeds would depend on evidence of the deficiency.

The report also notes the hearing took place on 3 September 2026, and that the developers' reply was dated 27 April 2026. According to the report, Advocates Simran Singh and Mumkin Ahmed appeared for the buyer, and Advocate Manisha Maggu for the developers. The case is cited as 2026 LLBiz RERA (PB) 155.

What should a Bengaluru buyer check before signing at handover?

Clearances first, wording second. Ask the developer for the occupancy or completion certificate and its date, and check the project status on the K-RERA portal. Read every clause in the sale or conveyance deed that acknowledges possession, completion or satisfaction. If something is incomplete or a certificate is missing, put your objection in writing before you sign, and ask for the wording to reflect it. If you choose to sign anyway, keep a dated record of the site's condition and your concerns.

It also helps to know what each document is for. An allotment letter and agreement fix the deadline; a deed transfers title and, as here, may record possession; a certificate from the competent authority shows the building or layout may lawfully be occupied. Asking which of these you are being handed, and in what order, makes it easier to spot when a deed is being offered before the certificate that should come first.

A seven-point checklist before signing a deed at handover

1. Ask for the occupancy or completion certificate and note its date.
2. Check the project's status and approvals on the K-RERA portal.
3. Read every clause in the deed that records possession or satisfaction.
4. Inspect the unit or plot and photograph its condition on the day.
5. Put any objection about missing clearances in writing before you sign.
6. Ask for the deed wording to reflect any reservation you have.
7. Keep copies of the deed, your letters and the inspection record together.

Frequently asked questions

Why did Punjab RERA reject the buyer's delay interest claim?

The conveyance deed, executed on 15 June 2021, recorded that physical possession had been delivered and accepted, before the 20 September 2021 deadline. The authority saw no doubt about the genuineness of possession, found no delay, and held that interest under Section 18 did not arise.

What advice did Punjab RERA give buyers?

It said it is always advisable to take possession of a plot or unit when the builder has all clearances from the competent authority, including an occupation certificate or completion certificate. It did not decide whether clearances were in place in this case.

Can the buyer still claim anything?

Yes, on the report. The authority disposed of the complaint for lack of merit on delay interest but granted the buyer liberty to seek compensation before the competent authority for any deficiency in the developers' services. Success would depend on evidence of that deficiency.

What should a Bengaluru buyer do before signing a deed at handover?

Ask for the occupancy or completion certificate, check the project on the K-RERA portal, read every clause recording possession or satisfaction, inspect the unit, and put any objection in writing before signing. This Punjab order is a guide, not a rule for K-RERA.

Last updated 2026-11-04. PropNewz Team.