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Builder told to refund Rs 54.5L, pay Rs 1 lakh compensation

No right to retain money of consumer if builder is not in a position to deliver unit, rules commission
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Observing that a builder who is not in a position to deliver the possession of the unit as promised has no right to retain the hard-earned money of the complainant, District Consumer Disputes Redressal Commission, Chandigarh, has directed a builder to refund Rs 54,58,681 to a Mohali resident.

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

Mohali resident Dr Parwinder Kaur Chawla, in a complaint filed before the commission, said she booked a flat in the project of Ansal Properties and Infrastructure Ltd in Mohali by paying a booking amount of Rs 1 lakh.

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The total cost of the said unit was Rs 48,93,808. A floor buyer’s agreement was executed on April 9, 2012.

As per the agreement, the possession of the floor was to be given within three years from the date of execution of the agreement but despite elapse of six years the possession of the flat has not been offered.

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The complainant said she had already paid Rs 44,58,810 to the builder, out of which Rs 10,68,810 was deposited from her own pocket and Rs 33,90,000 disbursed by the bank taken as loan.

She said she had also paid Rs 9,99,871 interest on the loan. The complainant alleged that despite repeated requests the builder has failed to offer possession of the unit nor paid any delayed compensation to her. Alleging the aforesaid act of builder deficiency in service and unfair trade practice on their part, she filed the complaint.

Denying the allegations, the builder said the flat was almost complete and only statutory clearances were being awaited from the authorities concerned. Denying any deficiency on its part, all other allegations made in the complaint have been denied being wrong.

After hearing of the arguments the commission said as per the agreement the possession of the flat was to be handed over within 30 months with an extended period of six months from the date of execution of agreement dated April 9, 2012.

Meaning thereby the possession was to be handed over to the complainant on or before April 8, 2015. But as per the case of the complainant, neither the possession of the flat has been handed over till date to her even after a gap of nine years of the promised date nor the clause 5.4 of agreement has been honoured, according to which the OPs were liable to pay compensation for delay at the rate of Rs 10 per sq ft per month of the super area of the flat till offer of possession.

The commission said in view the facts and circumstances of the present case, they were of the considered view that the complainants cannot be made to wait for an indefinite period and the OP builder who was not in a position to deliver the possession of the unit (s) as promised, had no right to retain the hard-earned money of the complainant.

In view of this, the builder is directed to refund Rs 54,58,681 (Rs 44,58,810 plus Rs 9,99,871) to the complainant along with interest at the rate of 9% per annum from the respective dates of deposit till onwards. The commission has also directed to pay Rs 1 lakh to the complainant as compensation for causing mental agony and harassment besides Rs 10,000 as costs of litigation.

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