Builder fined for not delivering plot at New Chandigarh in fixed time

Ramkrishan Upadhyay

Tribune News Service

Chandigarh, August 24

The District Consumer Disputes Redressal Commission, Chandigarh, has directed a builder to pay Rs5 lakh compensation to a consumer for not delivering the plot in the promised time.

The Commission also directed the builder to refund the entire amount, Rs74,24,299, along with interest @18 per cent per annum, to the consumer within a period of one month of the order.

Sanjay Kansal and Vandana Kansal, residents of Panchkula, in a complaint filed before the Commission, said they were allotted a residential plot measuring 304.14 square yards by Omaxe New Chandigarh Developers Private Limited in their project at New Chandigarh on September 30, 2011. They said as per Clause 24(a) of the allotment letter, the builder was to deliver the possession of the plot after the completion of development work within 24 months from the date of signing of the allotment letter/agreement dated March 14, 2013 i.e. latest by March 13, 2015.

The complainants said they paid an amount of Rs74,24,299 i.e. more than 95 per cent of the total sale consideration by May 31, 2016, but the builder failed to deliver the possession of the plot.

They said instead of delivering the possession of the plot, the builder vide letter dated April 10, 2017, informed them about the relocation of their plot to plot number 638 measuring 301.39 square yards. When she rejected the offer, the builder again offered relocation to another plot number 641, which too was refused by them as they never requested the relocation of the plot.

They alleged that the builder launched the project and also allotted a plot to the complainants without having necessary approvals/sanction for the same from the authorities concerned.

The builder, in its reply, denied all allegations and said it had all necessary approvals and was registered with the Punjab Real Estate Regulatory Authority. After hearing the arguments, the Commission held the builder guilty of deficiency in services and using unfair trade practice by not delivering the possession of the originally allotted plot to the complainants despite receipt of more than 95 per cent of the amount of the plot.

In view of this, the builder was directed to refund the entire amount i.e. Rs74,24,299, along with interest @18 per cent per annum, to the complainant from the respective dates of deposit till payment as the builder is itself imposing interest @18 per cent per annum on one-month delay in making payment and @24 per cent interest per annum, if delay is more than one month as per Clause 14 of the allotment letter/agreement.

The Commission also directed the builder to pay Rs5 lakh compensation for causing mental agony and harassment as well as litigation expenses.