ATS Estates to pay Rs 10 lakh to two Mumbai residents

Tribune News Service

Mohali, December 25

The Consumer Disputes Redressal Commission, Punjab, has directed ATS Estates Private Limited to pay Rs5 lakh each to two Mumbai residents as compensation for the delay in handing over the possession of flats booked at the ATS Golf Meadows project at Dera Bassi in Mohali.

Commission president Justice Paramjeet Singh Dhaliwal has further ordered ATS Estates Private Limited to pay simple interest on Rs 47.31 lakh to both complainants from August 10, 2016, till the delivery of the possession of the flats with all agreed facilities. The opposite parties were also directed to pay Rs 65,000 as the litigation costs and other expenses.

Rajneesh Chawla and Raunaq Jeet Singh Hanspal, both residents of Wadala East, Mumbai, had lodged a complaint that they had booked the flats having super area of approximately 1,900 sq ft, along with car parking space in the basement area, and the total cost of the units was fixed at Rs 64.3 lakh each.

They said they took a loan of Rs 50.24 lakh each from HDFC Limited at the rate of 10.40 per cent per annum. They paid Rs 55.01 lakh to the opposite parties on various dates and the units were promised to be delivered within 36 months plus grace period of six months. However, the opposite parties failed to deliver the possession of the units within the stipulated period.

Counsels for the opposite parties in their joint reply stated that the complainants have concealed the facts about other residential properties owned by them. They also hid their financial position, statement of Income Tax and assets and Income Tax Returns for the past five years prior to the date of booking. The dispute is complicated and technical in nature, which is liable to be referred to the Civil Court. They pleaded that due to force majeure circumstances, there was a delay in completing the project and now the construction was in full swing and expected to be completed soon.

Counsel for HDFC Ltd stated that the complainants had availed of loan of Rs 45.30 lakh each out of the total Rs 50.24 lakh In case of any contingency or termination of the agreement, HDFC Ltd has the first charge/right to seek apportionment of its dues.

The commission further ordered that in case the opposite parties fail to comply with the aforesaid directions, then they shall refund Rs 47.31 lakh each deposited by the complainants, along with compensation for causing financial loss and depriving the complainant of the use of the said amount during the period at the rate of 12 per cent per annum from the respective dates of deposit till realisation.