Developer told to refund Rs 38 lakh

Tribune News Service

Chandigarh, January 18

The State Consumer Disputes Redressal Commission has directed a real estate developer to refund Rs 38 lakh to a woman and her son for the delay in giving possession of a flat, and to pay Rs 50,000 as compensation for causing mental agony to them.

Complainants Chiterlekha Jindal and her son Rajiv Jindal, both residents of Sector 20-D, Chandigarh, sought directions to Emaar MGF Land Pvt Ltd (opposite party) for refund of Rs 38,21,650 paid towards purchase of a plot in the project named “Mohali Hills”, Sector 109, SAS Nagar. Total sale consideration of the plot was fixed at Rs 54,00,472.

The complainants submitted that despite making payment of substantial amount from September 23, 2006, to February 28, 2014, the developer failed to deliver possession of the plot by June 18, 2010, as envisaged under Clause 8 of the agreement dated June 19, 2007, for dearth of basic amenities, development and also necessary approvals/sanctions from the competent authorities.

During the period intervening, it was admitted by the opposite party vide letter dated February 22, 2014, that they cannot provide any definite date of possession of the plot.

In reply, the developer submitted that the Commission had no pecuniary jurisdiction and only the Civil Court had jurisdiction to entertain this complaint.

On the objection, the Commission stated here that it is a simple case of non-delivery of actual physical possession of the plot to the complainants by the opposite party by the promised date and also non-payment of compensation for the period of delay, thereby causing financial loss, mental agony and harassment to the complainants.

The acts, omissions and commissions on the part of the opposite party amount to deficiency in providing service as well as negligence and adoption of unfair trade practices.

The complainants had booked the plot in 2006 and started making payments with the hope of getting possession of the plot by the promised date of June 18, 2010. However, their hopes were dashed to the ground when possession of the plot was not offered by the stipulated date. When persistent requests were made in the matter, salt was added to their miseries, when the opposite parties informed them that possession of the plot cannot be offered to them for want of basic amenities at the project site. One can really imagine the plight of the persons like the complainants, observe the Commission.

The developer adopted unfair trade practices by usurping their hard-earned money and on the other hand, did not provide them anything. Not even a single word has been mentioned in the reply filed by the opposite party, as to why such inordinate delay has taken place.

Thus, the Commission directed the developer to refund Rs 38,21,650 to the complainants, along with interest at 10% per annum from the respective dates of deposit onwards and to pay compensation for causing mental agony and physical harassment to the complainants, deficiency in providing service and adoption of unfair trade practices and also cost of litigation, in lump sum, to the tune of Rs 50,000 to the complainants.