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Builder fined for delay in handing over apartment

Told to pay Rs1L relief, refund entire amount to city resident Ramkrishan Upadhyay Tribune News Service Chandigarh, September 27 Holding the builder guilty of deficiency in service for not handing over the apartment within the fixed time, the District Consumer...
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Told to pay Rs1L relief, refund entire amount to city resident

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Ramkrishan Upadhyay

Tribune News Service

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Chandigarh, September 27

Holding the builder guilty of deficiency in service for not handing over the apartment within the fixed time, the District Consumer Disputes Redressal Commission-1, UT, has directed it to pay a compensation of Rs1 lakh to a city resident.

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The Commission also directed the builder to refund the entire amount, which was deposited for the flat, to the complainant.

Vinod Jain, a resident of Sector 38, Chandigarh, in a complaint filed before the Commission, said he booked a service apartment in a project, Paras Square Service Apartments and Retail Units, Sector 63, Gurgaon, Haryana, for residential purpose in 2013 and paid Rs7,50,000.

Jain said he entered into an agreement with the builder on November 10, 2014, and the total sale consideration was settled at Rs80,66,490. As per the agreement, he was required to make payments as per construction to be carried out by the builder and the possession of the apartment would be delivered within 36 months from the date of start of construction.

The construction began in 2014 and the builder was bound to deliver the physical possession by the end of year 2017. From September 2, 2013 onwards, he paid a total amount of Rs79,10,741 to the builder on various dates as per the demand. The balance amount was to be paid on the delivery of possession, but the builder failed to deliver the actual physical possession despite repeated requests.

Alleging that the above act amounts to deficiency in service and unfair trade practice on part of the builder, he filed a complaint.

After hearing the arguments, the Commission, comprising president Rajan Dewan and members Suresh Kumar Sardana and Surjeet Kaur, said the builder was proved to have indulged in deficiency in service as it neither handed over the possession of the apartment within the stipulated period nor refunded the deposited amount to the complainant.

The Commission said in view of this, the builder was directed to refund the total amount deposited by the complainant, along with interest @9 per cent per annum. The Commission also directed the builder to pay Rs1 lakh as compensation for causing mental agony and harassment and Rs10,000 as cost of litigation to the complainant.

“The complainant had invested a huge amount in the project to purchase the apartment for residential purpose. Due to the failure of the builder in handing over the possession of the apartment, the complainant had to suffer harassment. Till date, the builder is enjoying the benefits of the amount deposited by the complainant,” the commission said in the order.

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