Possession of plot not given, builder to cough up Rs 5 lakh relief

The District Consumer Disputes Redressal Commission, Chandigarh, has directed a builder, Shalimar Estates Pvt Ltd, to pay Rs 5 lakh compensation to a Delhi resident for not being able to hand over a plot in a residential project.

The commission has also directed to refund the deposited amount to the complainant along with interest @ 9% per annum from the date of each deposit onwards.

Delhi resident Sneh Bansal, in a complaint filed before the commission, said the developer advertised the sale of various plots of different sizes in the project near Panchkula and invited public to purchase the plots as per the layout plan.

Vide her application dated November 20, 2001, she applied for a 10-marla plot and paid a sum of Rs 22,275 as earnest money. She was allotted a plot at Naggal village in Panchkula district. She deposited over Rs 2 lakh with the builder.

In 2002, the Haryana Government issued a notification declaring the area around the existing boundary of the Haryana State Industrial and Infrastructure Development Corporation Limited, Industrial Estate of Alipur village in Panchkula, a controlled area.

After the notification, whatever development works were done by the developer in the project were taken as unauthorised construction and a notice was issued by the Town Planning Department to the developer under Section 12 of the 1963 Act.

The developer was directed to demolish the construction that had been already raised. Against the notice, the developer filed an appeal before the tribunal but the same was dismissed. Against the order, the developer filed appeal before the Punjab and Haryana High Court. After a lot of litigation, the Supreme Court gave the verdict in the favour of the Haryana Government.

Sneh Bansal said had the developer taken the appropriate steps at relevant time, they could have taken permission from the authorities concerned.

Denying the allegations, the developer said in pursuant to the directions of the apex court, Shalimar Estates had represented to the state and applied for exemption and relaxation of the land for usage of residential colony. In this manner, the developer was not guilty of unfair trade practice as alleged.

After hearing the arguments, the commission said inordinate delay in offer of possession, amounts to ‘deficiency in service’ and homebuyer can ask for refund on this ground alone.

The commission said in view of this the builder was directed to refund the deposited amounts to the complainant along with interest @ 9% per annum from the date of deposit onwards.

The commission has also directed to pay an amount of Rs 5 lakh to the complainant as compensation for causing mental agony and harassment and also to pay Rs 10,000 to the complainant as costs of litigation.