Parsvnath Developers penalised

Failing to provide flat to complainant

Tribune News Service

Chandigarh, July 11

The District Consumer Disputes Redressal Forum has ordered Parsvnath Developers Pvt Ltd to pay interest amount on the money paid by complainants for a flat which was later refunded after the developers failed to provide the flat.

The complainants, Jaspal Singh Chahal, and his wife Narinder Kaur Chahal, had applied for two bedroom uunit in the project Parsvnath Royal, Sector 20, Panchkula. The complainant paid an amount of Rs.6,07,750 towards the earnest money. The total price of the unit was Rs.1,21,55,000.

The complainant opted for the construction link payment plan in which the payment was to be made depending upon the progress of the construction at the site.

The complainants paid regular installment whenever demanded and paid a total amount of Rs 31,38,750.

Thereafter, a flat buyer agreement was executed between the parties. According to the said agreement, the possession of the flat was to be delivered within 36 months of the signing of the Development Agreement dated July 24, 2008, between the developer and the Chandigarh Housing Board.

It is alleged that when the complainants visited the site there was no construction activity at all.

The complainants then received a letter dated February 6, 2015, from the Chandigarh Hosing Board along with a cheque of Rs 9,41,625 on account of 30 per cent share of refund intimating the complainants regarding the cancellation of the housing unit. The CHB also paid interest at the rate of 9 per cent per annum on the 30 per cent share amount of Rs.4,48,397.

Similarly, opposite parties Parsvnath Developers Ltd and the chairman and managing director, M/s Parsvnath Developers Limited refunded Rs.21,97,125 being 70 per cent of its share without paying any interest and also intimated regarding cancellation of the unit.

It was also alleged that the CHB arbitrarily deducted 20 per cent TDS which was liable to be refunded to the complainant.

The forum has directed Parsvnath Developers Ltd and chairman and managing director, M/s Parsvnath Developers Limited, to pay to the complainants interest at the SBI term deposit rate, from the respective dates of deposits, till date of refund of the deposited money

They have also been directed to pay compensation at the rate of Rs107.60 per sq. mt (Rs10 per sq. ft) of the super area of the unit, per month, from February 5, 2011, onwards to the complainants and litigant cost of Rs 5,000.

The CHB has been asked to issue TDS certificate to the complainants, if already not issued, on supply of copy of the PAN card by them, to enable complainants to seek the refund from the Income Tax Department, if permissible, under law.