Builder fined for not delivering flats
May 14, 2014
Source : The Times of India


DELHI: In what could tame builders who fail to deliver houses on time, the National Consumer Disputes Redressal Forum has asked realty major Parsvnath Developers to return the entire principal amount paid by two flat buyers with 18% interest and another Rs 7 lakh compensation to each for causing mental agony and harassment because of delay in handing over possession.

Clubbing two cases since both were of the similar nature, the forum on May 5 also observed, “It must be borne in mind that there is a huge delay in handing over the possession of the premises in dispute-about four years. The opposition party (read builder) has attempt to feather its own nest i.e. to make profits for itself at the expense of others.”

Rejecting the developer’s offer to pay Rs 2 lakh or Rs 3 lakh for the delay as “unjust and unfair”, the forum said, “The harassment and mental agony cannot be equated by payment of a few peanuts.”

In the first case, Subhash Chandra Mahajan and Aditya Mahajan had booked a 3-bedroom residential flat in Parsvnath Privilege Complex in Greater Noida in 2007. The developer had committed to complete the project within three years.

The duo had made full payment in May 2007 under the down payment plan and had also availed 10% rebate. The complainants alleged the construction had stopped in January 2008.

After finding no progress in construction, the complainant had demanded the refund, but to no avail. Subsequently, Subhash approached the consumer forum.

Another case, filed by Abhishek Kumar Dwivedi, against Parsvnath was similar. He had also paid the entire amount to book a flat, but failed to get possession in time. In its order, the forum mentioned that the developer’s counsel had said they would allot the flats to the complainants in June 2015.

“Since seven years have passed and till there is little sign of the project getting completed, the complainants asked the builder to return the entire amount so that they can buy new flats,” said Saurabh Jain, counsel of the complainants.

The forum asked the developer to pay Rs 50.79 lakh with 18% interest from the date of deposit to Mahajan. It directed the developer to pay Rs 7 lakh within 90 days from date of the order for harassment, mental agony, anguish, frustration, anger and sadness. If they fail to do so, then the developer has to pay 24% interest till realization.

In the second case of Abhishek Dwivedi, the developer has been asked to pay Rs 56.02 lakh along with an interest 18% from the date of deposit with an additional sum of Rs 7 lakh as compensation.

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