State Consumer Commission fines Chandigarh builder for late possession of flat

State Consumer Commission fines Chandigarh builder for late possession of flat
Aug 2017 , by , in Latest News

The State Consumer Disputes Redressal Commission fined Puma Realtors Private Limited of Chandigarh with Rs. 1.35 lakh and also directed to refund Rs 39.77 lakh as compensation to two brothers for failing to give possession of flat on time.

According to flat buyers Sukhjeet Singh and Dharup Singh, that they had booked a residential apartment in Ireo Rise, situated in Sector 99, Mohali with a cost of Rs 51.05 lakh. The possession was agreed to be handed over by July, 2015. Provisional allotment was given on July 6, 2011. On visiting the spot in December, 2016 they discovered that there was no development at the site. Instead of answering for their inadequacy, the builders demanded more money. The duo requested a refund of Rs 39.77 lakh deposited by them along with interest @ 18% from the respective dates of deposit. The complainants also had to incur Rs 3.50 lakh as rent due to non-availability of an accommodation.

Puma Realtors contested that firstly, complainants failed to specify as to what extent development was lacking and secondly that construction as per approved building plans and occupation certificates of the apartment in question were given on November 22, 2016, and thus the allegations made to the contrary have been denied. It further stated that the complainants never approached them regarding possession or development work of apartment. The complainants also failed to pay some due installments which is against the terms and conditions of the agreement.

The realtors did not have approvals from the competent authorities at the time of agreement.

The forum held, “The complainants have defaulted in paying installments after 30 month period. They have paid all installments till August, 2014. The delay period was over on till July, 2015. A failure in giving possession of the unit in question by the stipulated date is a material violation of the terms and conditions of the agreement.”

Thus, an amount of Rs 39.77 lakh along with simple interest of 12% per annum, from the dates of deposit to be paid along with Rs 1 lakh for unfair trade practices and Rs. 35, 000 towards cost of litigation.

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