Scarcity of building material, demonetisation no excuse for delay in project: Consumer court

While rejecting 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 a rate of 10 per cent per annum. The commission has also directed him to pay Rs 30,000 to the complainant as compensation for causing mental agony and harassment.

The commission has passed the order on a complaint filed by Tejinder Kaur, a resident of Mohali. In the complaint filed before the commission, she said she had booked a flat in the housing project called ‘Parkwood Glade’, launched by Parkwood Developers (Delhi) in Mohali on April 28, 2012, and deposited the booking amount of Rs 6,13,301.

She was allotted a flat for Rs 41,75,775 on May 2, 2012. Thereafter the flat buyer’s agreement was signed on May 5, 2012.

As per the agreement, the possession of the flat was proposed to be delivered by October 31, 2014. She deposited Rs 41,09,379 to the builder. She said 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 had been put on hold. There were no signs of development activities and basic amenities such as sewerage, water, electricity, etc. were found missing at the site.

On the other hand, the builder denied all allegations. He 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 a standstill. Furthermore, due to demonetisation in November, 2016, there was a shortfall of liquid money in the market and thereafter, GST was imposed by the government. As a result, all development activities of the project had suffered 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 could be made to wait indefinitely to get possession of the flat booked, it said. The builder had 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 amounted to deficiency in service as also unfair trade practice, it added. The commission said in view of this, the builder was directed to refund Rs 41,09,379 to the complainant with interest at the rate of 10 per cent per annum from the respective dates of deposits till the date of its actual realisation, besides compensation of Rs 30,000 on the account of mental agony and harassment including litigation expenses.