Delay in possession of flat costs company dear

Ramkrishan Upadhyay

Tribune News Service

Chandigarh, May 16

Not handing over the possession of a flat in the fixed time has cost a real estate company dear. The State Consumer Disputes Redressal Commission, UT, has directed Omaxe Chandigarh Private Limited to not only refund Rs63,39,972 to the complainant, along with interest, but also pay Rs50,000 as compensation for causing mental agony, harassment and cost of litigation.

Anjali, a resident of Khanna, who approached the commission through counsel Narender Yadav, said she booked a flat in “The Lake”, Omaxe, New Chandigarh, SAS Nagar district, in August 2014. As per the agreement dated April 7, 2015, the possession of the unit was to be delivered within 48 months from the date of pact. The builder was supposed to hand over the possession of the flat on or before April 2019, but it was not completed till date.

Anjali filed a complaint before the Commission seeking the refund of the entire amount, along with 15 per cent interest.

The builder, in its reply, refuted the claims of the complainant and said the project was registered under the RERA Act and the RERA authority was only competent to decide the matter.

Yadav said the builder was still not sure as by which date the possession of the unit could be given to the complainant. The period mentioned in the allotment letters and agreements had also expired.

After hearing the arguments, the Commission found the builder guilty of deficiency in service. The Commission said the complainant could not wait for an indefinite period in the matter. It further held that it is well-settled law that non-delivery of possession of plot/unit in a developed project by the promised date was a material violation on part of a builder. In these circumstances, the allottee was well within his/her right to seek refund. The complainant is therefore held entitled to get refund of the amount paid, along with interest, from the respective dates of deposits till realisation, which would meet the ends of justice.

The Commission held that the complainant could not be termed as a defaulter for non-payment of the remaining amount, if the builder failed to deliver the flat within the stipulated time. All facts established that from the very inception there was intent to induce the complainant to enter into the contract by way of signing agreement, and also intent to deceive him, which amounted to grave deficiency in providing service, negligence and adoption of unfair trade practice on part of the builder.

The Commission also rejected the plea of the builder that the case falls in the purview of RERA. It directed Omaxe Chandigarh Pvt Ltd to refund Rs63,39,972 to the complainant, along with interest at the rate of 12 per cent from the respective date of deposit till realisation within a period of 30 days. It also directed the builder to pay Rs50,000 as compensation to the complainant for causing mental agony, harassment and cost of litigation. The Commission also made it clear that no TDS should be deducted from the amount awarded as compensation.