Builder penalised for delay in giving possession of flat

Chandigarh, November 26

The State Consumer Disputes Redressal Commission has directed Omaxe Chandigarh Extension Developers Private Limited to pay Rs 1 lakh compensation to a consumer for delay in handing over the possession of the flat.

The commission has also directed the builder to deliver the actual physical possession of the flat to the complainant complete in all respects within 45 days.

The commission also directed the builder to pay interest @9 per cent per annum on the amount deposited from November 1, 2022 onwards by the 10th of every month till the actual delivery of physical possession of the unit complete in all respects.

Sangeeta Sood, a resident of Mohali, approached the commission through advocate Savinder Singh Gill after the builder failed to handover the flat in the project, “The Lake”, at New Chandigarh, Mullanpur, in the stipulated time.

Sood said an agreement of sale was executed on April 4, 2019. As per the agreement, the builder was to deliver the flat by July 31, 2021. She paid a sum of Rs 86,18,552 out of the total cost of the flat, which is Rs 99,88,760, to the builder.

She alleged that the builder was not serious in completing the development and construction work at the project site, which is causing mental agony, harassment and financial loss to her as she was forced to live on rent.

Omaxe said the delay in offering the possession of the unit took place due to force majeure circumstances faced by them due to the Covid pandemic. The Government of India also issued advisories, giving relief to builders by extending the dates for the completion of the ongoing projects. They took the pleas that as the competent authorities had extended the period for the completion of the project till December 31, 2022, this complaint was premature and the complainant would be compensated for the delay, if any.

After hearing the arguments, the commission held the builder guilty of the deficiency in service. “By not delivering the possession of the flat in the promised date or even with the extended period of nine months due to the Covid-19, the opposite parties are deficient in providing service and guilty of adoption of unfair trade practice,” the order reads.

The commission directed Omaxe to deliver the actual physical possession of the flat within a period of 45 days and pay a compensation of Rs 1 lakh for causing mental agony and harassment to the complainant. The commission also directed the builder to pay Rs 35,000 litigation cost to the complainant.