Consumer Court directs Mohali builder to refund 10.2 lakh to homebuyer for delay

Delay in possession

The District consumer forum of Mohali in a recent ruling has awarded a sum of Rs. 10.20 lakh and also pay compensation of Rs 35 thousand to a homebuyer, Sanjay Sharma, a resident of Chandigarh for not delivering the flat within given time frame.

The complainant entered into an agreement with Bajwa Developers dated 29 April 2001 for the purchase of 1BHK in Sunny Apartment Village, Sector 11, Mohali for Rs 12 lakh.

As per the agreement the Bajwa Developers were under an obligation to deliver the flat within three years from the date of first installment i.e. August 29, 2011. The complainant visited Bajwa developers on October 29, 2012 with the last payment of Rs.1.80 lakh but he was informed by the Developers told the complainant that the firm would be unable in handing over the possession of the flat due to some delay in the project.

In May, 2013, the complainant again visited the firm to know the status of project but there was no positive reply from the builder.

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It later came to notice that the developers have failed to comply with the terms and conditions of the license and the provisions of Punjab Apartment and Property Regulation Act, 1995.

Since the builder has failed to deliver the possession of the apartment within time, the complainant sent a registered application to the Developers for refund of the money but he did not get any refund. The complainant requested to be provided with a receipt of the amount by mentioning the same on a fresh agreement with same date. Moreover when the complainant requested for refund of the amount the builder retained the original agreement with it.

The Bajwa Developers had indulged in unfair trade practice and received the amount without getting any permissions and approvals as and was liable to refund the amount along with interest, claimed the complainant. On the contrary, the firm filed reply in which it was alleged that the complainant had committed default in payment of instalments.

After hearing arguments of both the sides, the court directed Developers to refund the deposited amount of Rs 10.20 lakh and also pay compensation of Rs 35 thousand to complainant.

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