Not having mandatory approvals costs builder dear

Ramkrishan Upadhyay

Tribune News Service

Chandigarh, January 8

Not having mandatory approvals cost a Mohali-based builder dear. The State Consumer Disputes Redressal Commission, Chandigarh, has directed the builder to refund Rs11,75,000 to the complainant, along with 9 per cent interest per annum. It has also directed the builder to pay a compensation of Rs1,50,000 for causing mental agony and physical harassment and Rs30,000 as litigation cost to the complainant.

Amit Kapoor, a resident of Sector 34, approached the commission after the builder failed to refund the amount invested in a project allegedly not approved by the government.

Kapoor, in his complaint, said he agreed to buy a hotel room in upcoming Aeropolis City Hotel in Sector 66-A, Mohali, launched by the builder.

Kapoor said he booked room number 518 on the fifth floor for Rs49,23,501. He paid an amount of Rs11,75,000 by taking loan from a bank. The remaining amount was to be paid as per clause 4 of the agreement, which was executed between both parties on April 27, 2019.

He claimed before the commission that in mid of May 2019, he came to know that the builder did not have the sale deed of the land in its name. He was not legally entitled to sell the rooms of the hotel and the land was not earmarked for the hotel site. The builder also did not have approvals from the Chief Town Planner, Punjab, and not enlisted with the RERA. Thereafter, the complainant visited the office of the opposite party (builder) and also moved an application on July 22, 2019, for the refund of the amount. After around five months, the builder issued cheques totalling Rs11,75,000, which were dishonoured by the bank.

By terming the act as deficiency in service and indulgence into unfair trade practice, Kapoor sought relief from the commission.

The builder claimed that the allegations of the complainant were of contractual nature, as such, triable in a civil court and the complainant is not a consumer. The builder stated that due to the Covid-19 pandemic, real estate business was worst hit. Now, he was willing to pay Rs11.75 lakh to the complainant in instalments. To show bona fide intentions, he was ready to deposit Rs3 lakh immediately and further undertakes to refund the entire amount within six months. The builder denied any deficiency in service. After hearing the arguments, the Commission directed the builder to refund the amount with 9 per cent interest per annum from the respective dates of deposits till realisation.