Builder told to refund booking amount of Rs 50K with interest

A person cannot be made to wait indefinitely for the possession of a flat in a housing project. While observing this, the District Consumer Disputes Redressal Commission, Chandigarh, has directed a builder to refund the booking amount of Rs 50,000 with interest to a city resident after the builder failed to give the possession of a flat after two years of the start of housing project

The commission said that when there was no possession period stipulated in the agreement, a reasonable time has to be taken into consideration.

Archana Devi, a resident of Chandigarh, in the complaint filed before the commission said that in May 2017, a representative of M/s Dara Buildtech and Developers Limited approached her regarding a housing project in Mohali. She booked a 2BHK flat in the project, Dara Affordable Homes, in Sector 115, Mohali, and paid the booking amount of Rs 11,000 vide receipt dated September 1, 2017. The total cost of the flat was Rs 8.75 lakh, against which she paid Rs 39,000 on November 22, 2017. She claimed that the builder had also issued a confirmation of booking on December 1, 2017.

She further said that when the builder never demanded the balance amount to be deposited, nor informed her about the completion of the project, she visited their office many times to know about the progress of the construction of the flat, but to no avail. Having no option, she asked for a refund of the booking amount vide letter dated November 19, 2019, from the builder, but that too was not done. She alleged that the acts of the builder meant deficiency in service and unfair trade practice.

On the other hand, the builder in the reply denied the allegations. The builder claimed that in fact the complainant had shown her inability to pay the amount and she could not make the payment as per schedule. Denying any deficiency in service or unfair trade practice as well as all other allegations, the builder sought dismissal of the complaint.

After hearing the arguments, the commission said the builder should have given a fix date for handing over the possession at the time of taking the booking amount. By not giving the true picture with regard to their project to the respondents, the appellants induced them to part with their hard earned money, which also amounted to unfair trade practice. Hence, the act of the builder to collect the money and not deliver the possession of the flat certainly proves deficiency in service and their indulgence in unfair trade practice, it said.

The commission said that in view of this the builder was directed to refund the deposited amount, i.e. Rs 50,000, to the complainant along with interest at 10% per annum from the date of respective deposits till the date of its actual realisation. The representative of the builder is also directed to refund Rs 10,000 to the complainant along with interest at 10% per annum.

Unfair trade practice, says commission

The commission said the builder should have given a fix date for handing over the possession at the time of taking the booking amount. By not giving the true picture with regard to their project to the respondents, the appellants induced them to part with their hard earned money, which also amounted to unfair trade practice.