Flat possession delayed, ATS told to refund Rs 53L

Tribune News Service

Chandigarh, November 11

If the builder fails to deliver possession of the plot/apartment by the specified date, it is liable to refund the amount deposited by the buyer with interest. This has been observed by the State Consumer Disputes Redressal Commission, Punjab.

In their complaint, Nikita Verma and her husband Nitin Verma, residents of Sector 38-West, Chandigarh, had submitted that ATS Estates Private Limited (opposite party) advertised its upcoming project by the name of ‘ATS Golf Meadows Lifestyle’ at Dera Bassi.

The complainants booked an apartment by paying the booking amount of Rs 2 lakh on September 6, 2014. It was further agreed that all taxes, duties, additional charges and service tax shall be payable in addition to the price of the flat.

On October 28, 2014, both the parties entered into an agreement for the purchase of an apartment in the project.

The complainants took a housing loan of Rs 25 lakh from ICICI Bank for part payment of the sale consideration. They paid the remaining amount themselves.

As per Clause 14 of the Buyer Agreement, the opposite party was to hand over the possession of the apartment within 36 months with a grace period of six months from the date of the start of the construction of the particular tower.

However, the opposite party failed to deliver the possession within the stipulated period. The complainants repeatedly requested the opposite party to hand over the possession.

However, it offered to pay a compensation at the rate of Rs 5 per sq ft per month, which the complainants denied and demanded possession of the flat.

The opposite party had filed an application for the dismissal of the complaint on the grounds that after the enactment of the Real Estate (Regulation and Development) Act, 2016 (RERA), the consumer commission has seized to have jurisdiction to entertain the complaint.

While allowing the complaint and dismissing the builder’s application, the commission held that it was competent to entertain and decide such cases and the enactment of the RERA did not bar the jurisdiction of the consumer forums.

“The complainants cannot be made to wait for an indefinite period for the delivery of the possession of the apartment purchased by them. It is a settled law that when there is a material violation on the part of the builder, in not handing over possession of unit/plot by the stipulated date, the purchaser is not bound to accept the offer, even if the same is made at a later stage. On the other hand, the buyer can seek refund of the amount paid,” observed the commission.

“To get the relief, the complainants have to wage a long-drawn and tedious legal battle. As such, the complainants are at loss of opportunities. Under these circumstances, the complainants are entitled to the refund of the amount deposited by them, along with interest and compensation,” stated the commission.

The commission directed ATS Estates Private Limited to refund a sum of Rs 53,70,175 as prayed, along with interest at the rate of 12 per cent per annum from the respective dates of deposits till their realization. The firm was also told to pay Rs 65,000 as compensation on account of mental agony and harassment as well as litigation expenses.