Builder Bound by Its Own Assurances of Earlier Possession; Cannot Rely on Distant Contractual Date: TNRERA
Case Title: Namasivayam v. Casa Grande Smart Values Homes Pvt. Ltd. & Ors.
Case No.: R.C.P. No. 107 of 2025
Date of Decision: 3 September 2026
The Tamil Nadu Real Estate Regulatory Authority (TNRERA), comprising Chairperson K. Phanindra Reddy and Members A. Nazir Ahamed and Reeta Harish Thakkar, held that a promoter cannot rely solely upon a distant possession date stipulated in the agreement when it has subsequently made a specific commitment to hand over possession on an earlier date through its own communications.
The complainant had booked a villa in the Casagrand Divinity Project, Chengalpattu, for approximately ₹1.91 crore and had paid more than ₹1.58 crore in 2023, partly through a housing loan obtained from the State Bank of India. Although the agreement contemplated completion by April 2027, the promoter subsequently communicated to the complainant that possession would be handed over by December 2023, with a grace period extending up to March 2024.
The promoter subsequently extended the promised date to April 2024, citing floods, but cancelled the complainant's booking in February 2024 on the ground that certain dues remained unpaid. The promoter contended that April 2027 was the only binding contractual date and that its communications regarding earlier possession were merely tentative estimates. It further alleged that the complainant was himself in default and therefore could not claim compensation under Section 18 of the RERA Act, 2016.
TNRERA rejected this contention and observed that the complainant was entitled to rely upon the promoter's specific representations regarding the earlier date of handover. Significantly, the project obtained its Completion Certificate only in November 2024, demonstrating that possession could not have been delivered even by the subsequently promised date of April 2024.
The Authority accordingly held that the promoter's failure to honour its commitment attracted liability for delay and that the complainant was entitled to interest from March 2024 until actual handing over of possession in April 2026, pursuant to the earlier directions of the Authority.
The promoter was directed to pay interest at 10.90% per annum on the amount paid by the complainant, together with ₹25,000 towards litigation costs, within 30 days.
Key Takeaway: A promoter may be held to an earlier possession commitment communicated to the allottee, notwithstanding a later contractual possession date, particularly where the promoter's own subsequent conduct demonstrates that the earlier commitment could not be fulfilled.
