Bajwa Developers fined

Ishrat S Banwait
Tribune News Service
Mohali, October 19

The District Consumer Forum here has penalised M/s Bajwa Developers Limited, Sunny Enclave, and its Managing Director Jarnail Singh Bajwa for failing to deliver the possession of a flat on time. The forum has imposed a penalty of Rs 25,000 and issued directions to refund Rs 6.60 lakh, paid by the complainant.

A Dashmesh Nagar resident, Davinder Singh, had filed the complaint. He stated that he agreed to purchase a 450 sq ft flat in Sunny Apartments, Sector 74, Mohali, on December 22, 2011, for a total sale consideration of Rs 12 lakh.

On execution of the agreement, dated May 4, 2011, an amount of Rs 3 lakh was paid and Rs 1.80 lakh was paid on November 25, 2011, while another Rs 1.80 lakh was paid on May 19, 2012.

The cheques were encashed and Rs 6.60 lakh was obtained by the opposite parties (OPs). Possession of the fully constructed flat was to be delivered on or before December 31, 2013, but the construction work did not begin. The OPs kept buying time on one pretext or the other by way of extending time for delivery of possession up to June 30, 2014, and then to November 11, 2014, July 30, 2015, and January 7, 2016.

According to the complaint, even till August 2016, the OPs failed to carry out construction and when a refund was demanded, another promise for delivery of possession till July 31, 2016, was made. However, the same was done after execution of a fresh agreement of sale dated April 18, 2016, in respect of the same flat. The payment was to be made as per the plan worked out in the schedule of instalments at different intervals.

According to the complainant, the licence for developing the colony was granted by GMADA to the OPs on November 13, 2014. More than 50 per cent of the total sale consideration amount had already been paid by the complainant to the OPs, but despite this, the possession was not given. The complainant thus approached the forum.

The developer, in its reply, stated that the complaint was time-barred if the original agreement was considered. Moreover, it was claimed that the first agreement was replaced in 2016 and the parties were bound to abide by the same. It was added that the complainant had claimed to be from the EWS category, which was false. It also stated that Davinder had not paid the instalment after the fresh agreement.

The contentions of the builder did not stand before the forum and it was directed to refund the amount of Rs 6.60 lakh. A compensation of Rs 20,000 for mental agony and harassment and litigation expenses of Rs 5,000 will also be paid to the complainant.