Commission asks developer to refund Rs 37 lakh for delaying possession of flat

Ramkrishan Upadhyay

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Tribune News Service

Chandigarh, August 3

The State Consumer Disputes Redressal Commission, Chandigarh, has penalised a developer for delay in delivering the possession of a flat to a resident within the stipulated time period of two years.

The commission directed Primary Estates and Developers Private Limited to refund an amount of Rs37,51,000 to a resident, along with 12 per cent interest per annum, within a period of 30 days to the complainant. It also asked the developer to pay a consolidated amount of Rs50,000 to the complainant as compensation for mental agony and physical harassment and cost of litigation.

Gurmeet Singh Jogar, a resident of Sector 49-A, Chandigarh, filed a complaint against Primary Estates and Developers Private Limited seeking the refund of Rs37,51,100 paid by him between September 8, 2011, and December 2, 2014, towards the purchase of an independent floor in a project, “Arcadia Dream Homes”, launched by the developer in Sector 116, SAS Nagar, Mohali, Punjab. The total sale price of the flat was fixed at Rs33.95 lakh.

Despite the fact that substantial amount had been paid, the developer failed to deliver the possession of the said unit by December 28, 2016, i.e. within a period of two years as per Clause 17 (a) of the agreement dated December 29, 2014, due to lack of construction and development works at the project site.

It has been stated that neither the possession of the unit was delivered within the stipulated time period nor compensation by way of monthly assured return, as promised by the opposite parties, was paid to the complainant.

The order says that the complainant had booked the unit in year 2011 and its possession was to be delivered by December 2016. Now it is 2020 and the complainant is still empty-handed despite the fact that the substantial amount had been stood paid to the opposite parties. The complainant cannot be made to wait for an indefinite period on the bald assurances given by the opposite parties.

Relief for mental agony, harassment

The commission directed Primary Estates and Developers Private Limited to refund an amount of Rs37,51,000 to a resident, along with 12 per cent interest per annum, within a period of 30 days to the complainant. It also asked the developer to pay a consolidated amount of Rs50,000 to the complainant as compensation for mental agony and physical harassment and cost of litigation.