RERA tells firm to pay Rs 6.25L to flat owners

Sanjay Bumbroo

Tribune News Service

Mohali, October 25

In a major relief to investors, the Real Estate Regulatory Authority (RERA), Punjab, has directed KC Land and Finance Limited, SBS Nagar (opposite party), to pay a compensation of Rs1.25 lakh per flat to residents of Panchkula and Mumbai for failing to deliver the possession of five flats.

Balbir Singh, Adjudicating Officer, RERA, Punjab, further directed the company to pay simple bank interest plus 2 per cent besides refunding Rs95 lakh deposited with the opposite party.

The counsel for the complainants had averred that as per the agreement, his clients had applied for flats in the opposite party’s project, “Floral Court” Janta Residential Township, in Sector 91, Mohali. He said as per the agreement, five flats bearing No A-301, A-302, A-401, A-402 and A-501 in GH-1 were allotted to the complaints on March 29, 2017, for Rs1 crore each. Of the total payment of Rs5 crore, Rs3.85 crore was adjusted as per the agreement and Rs90 lakh through cheques was paid to the opposite party on March 29, 2017.

The balance amount of Rs25 lakh was to be paid at the time of delivery of possession of flats. As per the agreement, the possession of the flats was to be given within two years, i.e. by March 29, 2019. The complainants had averred that the project was only a structure and there was no scope of its completion in near future.

The complaints served a legal notice to the opposite party on September 10, 2019, asking for delivery of possession of the flats within three weeks failing which they would avail of legal remedy. The opposite party, in its reply, admitted that the project was incomplete and pleaded that the flats would be ready for possession by March 31, 2020.

The counsel for the opposite party argued that the complaints had concealed the material facts that due to the paucity of funds, the construction work had slowed down and the opposite party was forced to seek extension of time for completing the project from RERA, and extension to complete flats in Tower-A til December was granted on October 31, 2017. The cost of the material involved in the construction had increased manifold which had stalled the construction of the flats and as per the agreement, the opposite party was ready to pay a penalty of Rs10 per sq ft since March 29, 2019, till the possession of flats.