Builder fails to give commercial space on time, told to pay Rs 1 lakh to Panchkula resident

Tribune News Service

Chandigarh, January 21

The District Consumer Disputes Redressal Commission, Chandigarh, has directed a builder to pay a compensation of Rs 1 lakh to a Panchkula resident after it failed to deliver the commercial space in the promised time.

The commission also directed the builder to refund the deposited amount of Rs30 lakh, along with interest @ 9 per cent per annum from the date of deposit till realisation, to the complainant.

Mamta Jain, a resident of Panchkula, in a complaint filed before the commission, said she booked a multi-use studio on the ninth floor having a super area of 475.13 sq ft in GBP Centrum on August 31, 2016. The total price was fixed at Rs30 lakh inclusive of all charges. The complainant paid the entire amount of Rs30 lakh through cheques.

As per the agreement, the builder agreed that the possession of the unit would be delivered on or before 48 months from the date of signing the agreement.

The builder was obliged to deliver the actual, physical possession in August 2020. Even after taking six-month grace period on account of failure on part of the opposite party, the actual physical possession was to be delivered by February 2021. However, the builder failed to fulfil the promise.

The commission said a notice was sent to the builder seeking its version. However, nobody appeared on behalf of the opposite party despite service. Therefore, it was proceeded ex-parte.

After hearing the arguments, the commission said the act of the builder or non-honouring its promise for handing over the possession of the unit in the promised time, collection of money without required sanctions/permissions and non-honouring the terms and conditions of its own agreement was illegal and arbitrary, which certainly caused physical and mental harassment to the complainant and proved its indulgence in unfair trade practice.

The commission said in view of this, the builder was directed to refund an amount of Rs30 lakh, along with interest @ 9 per cent per annum from the date of deposit till realisation, to the complainant. The commission also directed the builder to pay Rs70,000 compensation for mental agony and harassment and Rs30,000 as cost of litigation.

About The Author

Tribune News Service

The Tribune News Service brings you the latest news, analysis and insights from the region, India and around the world. Follow the Tribune News Service for a wide-ranging coverage of events as they unfold, with perspective and clarity.

Join Whatsapp Channel of The Tribune for latest updates.