Consumer court pulls up JIT over Indra Puram flats, orders refund to buyer

In a major setback to the Jalandhar Improvement Trust (JIT), the District Consumer Disputes Redressal Commission has ordered the trust to refund the money paid by a flat buyer in the Indra Puram (Master Gurbanta Singh Enclave) housing scheme, holding that the authority failed to deliver a livable house despite taking the full payment and claiming possession years ago.

The commission held the trust guilty of deficiency in service and unfair trade practice, noting that the housing project lacked basic civic infrastructure, including electricity, water supply, sewerage connectivity and proper approach roads, leaving the allottee in limbo.

The case dates back to 2006, when the complaint Rajinder Kalra was allotted an LIG flat in Indra Puram through a lucky draw conducted by the trust, for which the allottee had paid Rs 4.37 lakh to the trust.

However, the commission observed that despite collecting the full payment, the trust did not develop the project with basic amenities required for habitation. In October 2009, the trust called the allottee and other buyers to its office and got them to sign documents, acknowledging possession of their flats. The commission noted that this amounted to mere “symbolic or paper possession” as the flats and the surrounding infrastructure were still incomplete.

When the allottee later visited the site to take physical possession, he allegedly found that the project was far from ready for occupancy. The flats lacked electricity supply, there was no functional water connection, sewage pipelines were incomplete and the promised approach roads had not been properly constructed. The complainant also alleged that substandard material had been used in the construction.

The order also highlighted serious delays in providing electricity to the project. According to the official records, Punjab State Power Corporation Limited (PSPCL) had demanded more than Rs 10 lakh from the trust for installing electricity supply for the enclave. The commission noted that JIT paid the amount only in August 2012, nearly three years after it had already claimed to have handed over the possession of the flat.

During the proceedings, the JIT argued that the complaint was not maintainable and was barred by limitation, claiming that possession had already been handed over in 2009. The trust also contended that disputes related to real estate should be taken to regulatory authorities under the Real Estate (Regulation and Development) Act, 2016.

However, the commission rejected these arguments, observing that the trust failed to produce required documents such as completion or occupancy certificates which are mandatory to establish that a housing project is complete and ready for occupation.

In the absence of these documents and basic amenities, the commission held that possession could not be treated as valid and the buyer continued to suffer from the delay.

Hence, the commission directed the Jalandhar Improvement Trust to refund the deposited amount along with interest at 9 per cent per annum from the date of payment until realisation. The trust has also been ordered to pay Rs 30,000 as compensation for mental harassment and Rs 10,000 as litigation expenses.

The commission directed the authority to comply with the order within 45 days, failing which it will have to pay an additional 3 per cent interest on the amount.