Commission tells builder to pay Rs 50K relief to consumer

Chandigarh, July 23

State Consumer Disputes Redressal Commission, Chandigarh, has directed a builder to pay a compensation of Rs50,000 for not delivering the possession of a plot in the fixed time. The commission has also directed for the refund of the paid amount of Rs24 lakh  to the complainant, with  interest at the rate of 12  per cent per annum within a period of 30 days.

Varinder Kumar, a resident of Panchkula, approached the  commission after the builder allegedly failed to hand over the possession of a plot to him in the fixed  time and sought the refund of the amount of  Rs 24 lakh paid by him towards the purchase of the plot. In the complaint filed before the commission, he said he bought the plot in the project named, ‘Emerging Valley’, on the Landran-Banur road, Mohali district, in resale from Ajit Singh. He alleged that after making payment, neither agreement was executed nor possession of the plot delivered to him.

After a long period, the builder offered relocation to a new plot in some other project at a much higher rate than the original rate of the plot initially purchased by him. Not satisfied with the offer, he sought a refund of the amount paid, but to no avail.

The counsel for the complainant alleged that the project had been launched in complete violation of relevant rules and regulations and the project stood abandoned. It is not feasible to get legal possession of the plot in near future also.

The builder, however, denied the charges and prayed for the dismissal of the complaint.

After hearing the arguments, the commission held the builder guilty of deficiency in providing service and adoption of unfair trade practice. It said “despite obtaining substantial amount equal to about 25 per cent of the total sale consideration, neither agreement was executed nor thereafter, possession offered to the complainant. We cannot make the complainant wait for an indefinite period for getting possession of the plot or the relocated flat, which, in fact, is not even feasible.’ In view of this, the commission has directed the builder  to refund Rs24 lakh to the complainant, along with interest at the rate 12% per annum and to pay Rs50,000  towards compensation for causing mental agony and harassment, and cost of litigation.