Demonetisation, scarcity of building material no excuse for project delay

Rejecting the pleas of scarcity of building material, demonetisation and imposition of the GST for delay in the housing project, the District Consumer Disputes Redressal Commission, Chandigarh, has directed a builder to refund Rs 41,09,379 to a Mohali resident, along with interest at the rate of 10 per cent per annum.

Passing the order on a complaint filed by Tejinder Kaur, a resident of Mohali, the consumer commission also directed the builder to pay Rs 30,000 to the complainant as compensation for causing mental agony and harassment.

In the complaint filed before the commission, Tejinder Kaur said she had booked a flat in Parkwood Glade housing project launched by Parkwood Developers Delhi in Mohali, on April 28, 2012, and deposited booking amount of Rs 6,13,301. The complainant was allotted a flat for Rs 41,75,775 vide allotment letter dated May 2, 2012. The flat buyer’s agreement was signed on May 5.

According to the agreement, the possession of the flat was proposed to be delivered by October 31, 2014. Tejinder Kaur deposited Rs 41,09,379 with the builder.

The complainant said despite taking the amount the builder failed to deliver the possession of the flat as per the agreement.

She visited the project site but was shocked to see that the construction work has been put to a halt.

There were no signs of development activities and basic amenities such as sewerage, water, electricity, etc were missing at the site, the complainant claimed.

In the reply, the builder denied all allegations. The builder claimed that the delay in delivery of possession was due to circumstances beyond their control. There was a ban imposed on building material i.e. sand and granules in Punjab for a considerable period, as a result of which all the building activities in Punjab as well as other parts of the country had come to standstill, the builder claimed.

Further, due to demonetisation in November 2016, there was a shortfall of liquidity in the market and after that Goods and Services Tax (GST) was imposed by the Government. Due to which all development activities of the project had to suffer a great setback.

No case for refund has been made out.

After hearing of the arguments the commission said the act and conduct of the builder was a clear case of misrepresentation and deception.

The complainant cannot be made to wait indefinitely to get possession of the flat booked.

The builder has not only failed to deliver the possession of the flat despite receipt of the substantial amount, but also failed to refund the deposited amount to the complainant despite her request, which itself amounts to deficiency in service as also unfair trade practice.

the District Consumer Disputes Redressal Commission said in view of this the builders was directed to refund Rs 41,09,379 to the complainant along with interest from the respective dates of deposits till the date of its actual realisation, along with compensation of Rs 30,000 on account of mental agony and harassment, including litigation expenses.