State Consumer Forum directs Emaar MGF Land Limited to pay Rs 43.5 lakh to buyer for delay

State Consumer Forum directs Emaar MGF Land Limited to pay Rs 43.5 lakh to buyer for delay
Aug 2017 , by , in Latest News

The State Consumer Disputes Redressal Forum has directed Emaar MGF Land Limited to refund Rs 42 lakh and pay compensation of Rs 1.50 lakh to a Chandigarh resident for the delay in handing over a commercial plot to a resident of Sector 37.

Harpreet Chawla, in her complaint, stated that she had applied for a unit in ‘Central Plaza,’ Sector 105, in the project Mohali Hills of Emaar MGF Land Limited by depositing a registration amount of Rs 6.91 lakh on March 25, 2008. She paid more money thereafter.

On May 21, 2015, Chawla was informed that possession was ready and the builder demanded an amount of Rs 31.18 lakh. However, when she visited the site, she found that the work was not complete because electricity, water connections and sewage system was not available and unit was not complete due to lack of amenities. It was further stated that only paper possession was offered after more than four years from the stipulated date of delivery. It was further stated that the complainant deposited an amount of Rs 42.79 lakh out of the total price of Rs 49.21 lakh but the realtor failed to deliver physical possession despite repeated requests and visits.

As per a clause of the agreement, possession of the unit was to be delivered within a period of 36 months from the date of execution of the agreement with grace period of 90 days, failing which, a penalty of Rs 50 per sq ft per month was to be paid for the period of delay beyond three years till offer of possession.

In its reply, the builder stated the possession was offered on May 21, 2015, and the complainant chose to wait from that date and filed a complaint only in April. It was denied that the possession of the plot was to be delivered within 36 months with the grace period of 90 days from the date of agreement. The company proposed to hand over possession of the unit within 36 months from the date of allotment plus a grace period of 90 days and in case of delay, the interest of customers was protected by the penalty clause under the agreement, they said.

The forum, however, rubbished the claim of the realtor stating that it “is also devoid of merit.” It was stated that the builder “was bound to deliver possession of the unit, within a maximum period of 36 months from the date of signing of the agreement, as such, time was, unequivocally made the essence of contract.” Emaar was then directed to make payments with interest.

About Realty Plus

Loading...