Builder failed to hand over plot, directed to refund Rs 28.37 lakh

The District Consumer Disputes Redressal Commission, Chandigarh, has directed a builder to refund Rs 28,37,500 to a city resident along with interest at the rate of 9 per cent per annum for failing to hand over the possession of a plot in a housing scheme within promised time despite receiving the full amount.

The commission also directed the builder to pay Rs 1 lakh to the complainant as compensation for causing mental agony and harassment and Rs 10,000 as costs of litigation.

In the complaint filed before the commission through counsel Anirudh Gupta, complainant Lalita Sharma said she had booked a 10-marla plot with a housing project initially launched by AB Apartments, in 2005. Later, the project was taken over by Preet Land Promoters and Developers.

She had paid almost the entire amount of Rs 28,37,500. Preet Land Promoters and Developers sent an allotment letter dated July 6, 2013. to her. The complainant said she visited the site in July 2015 and was shocked to see that no construction work or any sort of development had taken place on the spot.

She alleged that officials of the company assured the possession within a shorter period of time, but nothing was done. In reply, an officials of the company said they do not have any land left with them due to the change in sector plan and the policies introduced by the government.

The allotment letter explicitly stated that in case of any dispute regarding the land, the allottee must wait until the resolution of such dispute. They have already approached the Punjab and Haryana High Court for acquiring alternative land from GMADA in exchange for the land acquired from the builder. Therefore, the complainants were required to wait until the dispute was resolved as per the terms of the allotment letter and due to the current situation, the officials said. The complainants have the option either to wait for the resolution of the land dispute or opt for refund, but they cannot insist for possession at this juncture.

After hearing of the arguments, the commission said it was clear that the builder was bound to offer possession of the plot within a reasonable time of three years, but till date the same was not offered.

The complainant cannot be made to wait for an indefinite period and the builders, who are not in a position to deliver the possession of the unit as promised, have no right to retain the hard earned money of the complainants.

In view of this the builder Preet Land Promoters and Developers Pvt has been directed to refund Rs 28,37,500 to the complainant along with interest at the rate of 9% per annum from the respective dates of deposit till onwards and also to pay Rs 1 lakh as compensation for causing mental agony and harassment, besides Rs 10,000 as costs of litigation.