JIT fined for failure to deliver flats, ordered to compensate allottees

Avneet Kaur

Jalandhar, May 21

The Jalandhar Improvement Trust (JIT) has incurred significant losses due to its failure to deliver possession of flats to the allottees of the Bibi Bhani Complex.

The District Consumer Disputes Redressal Commission recently addressed three similar complaints and ruled that the Trust must reimburse the allottees’ money, along with 9 per cent interest, and pay Rs 35,000 as compensation and litigation expenses for each case. This amounts to a total of nearly Rs 38 lakh.

The complainants, Paramdeep Kaur, Hardeep Kaur, and Sukhdev Singh, shared their grievances regarding the LIG flats they were allotted in the 51.5 Acre Scheme, Bibi Bhani Complex in 2009. They were promised two-storeyed apartments with all necessary amenities and high-quality infrastructure and were assured possession would be granted in 2012.

According to the complainants, they paid the flat prices ranging from Rs 5.85 lakh to Rs 6.15 lakh within two-and-a-half years, following the specified terms. The final installment was paid in 2012. Despite making multiple visits to the JIT authorities in the past, requesting development work completion and possession handover, they received no satisfactory response. Consequently, they sought justice by filing complaints with the consumer court.

Paramdeep Kaur and Hardeep Kaur accused the JIT of perpetrating a major fraud against innocent residents. They asserted that the Trust collected lakhs of rupees from the allottees in the name of this residential scheme, yet even after a decade, possessions had not been handed over. They further stated that the Bibi Bhani Complex had become a hub of anti-social activities at present, with poor-quality vacant flats being illegally occupied by miscreants.

Sukhdev Singh, another allottee, explained that the JIT coerced the allottees into taking possession of their flats in 2017 by issuing a notification. However, upon inspecting the complex, he found the quality of the flats below par. Additionally, essential facilities such as streetlights, electricity connections, and roads, which were promised during the allotment, were absent. Consequently, he had no choice but to reject the possession and turn to the court for redress.

The commission sent a notice to the Jalandhar Improvement Trust. In response, the JIT’s counsel argued that the complaints were time-barred, filed after a four-year lapse, and thus the claim for monetary compensation was not admissible. Regarding Sukhdev Singh’s case, the Jalandhar Improvement Trust contended that he was not the original buyer but purchased the property for commercial purposes, implying the complaint should be dismissed.

After examining the facts presented by all parties, the president of the commission in Paramdeep Kaur and Hardeep Kaur’s case, stated that partial possession had been handed over to the complainants without development work and essential amenities. As a result, the Jalandhar Improvement Trust was ordered to refund their deposited amount with 9 per cent interest per annum, along with Rs 35,000 as compensation and litigation expenses, within 45 days.

In Sukhdev Singh’s case, the Commission directed the Jalandhar Improvement Trust to complete the development works and provide all amenities mentioned in the scheme’s brochure within three months. Failure to comply would result in the JIT being required to return the deposited amount with 9 per cent interest per annum, in addition to paying Rs 35,000 as compensation and litigation expenses.

Trust to refund nearly Rs 38L to three complainants

In its ruling, the District Consumer Disputes Redressal Commission recently directed the Trust to reimburse the three complainants their money, along with 9 per cent interest, and Rs 35,000 as compensation and litigation expenses for each case. This amounts to nearly Rs 38 lakh

The complainants, Paramdeep Kaur, Hardeep Kaur, and Sukhdev Singh, said they were promised two-storeyed apartments with all necessary amenities and high-quality infrastructure in the 51.5 Acre Scheme, Bibi Bhani Complex by 2012. However, JIT failed to fulfil its promises