CityweliveThe State Consumer Disputes Redressal Commission, Chandigarh, has instructed a real estate developer to compensate a complainant with Rs 50,000 for failing to hand over possession of a plot within the stipulated timeframe. Additionally, the commission ordered a refund of Rs 24 lakh, the amount already paid by the buyer, along with 12% annual interest, to be processed within 30 days.
Varinder Kumar, a resident of Panchkula, filed a complaint with the commission, alleging that the builder did not deliver possession of the plot within the promised period. He sought a refund of the Rs 24 lakh he had paid for the property. In his complaint, he stated that he had purchased the plot—part of the “Emerging Valley” project located on the Landran-Banur road in Mohali district—on resale from one Ajit Singh. However, after the payment, neither a formal agreement was executed nor was possession handed over.
After a significant delay, the builder proposed shifting him to a different plot in another project, but at a considerably higher price than the original. Dissatisfied with the alternative offer, the complainant demanded a full refund, which the builder failed to provide.
The complainant’s legal representative argued that the project had been initiated in breach of several applicable laws and had since been effectively abandoned. He further asserted that taking lawful possession of the plot in the foreseeable future was highly unlikely.
The builder denied the allegations and requested the complaint to be dismissed.
After evaluating both parties’ submissions, the commission found the builder guilty of service deficiency and engaging in unfair business practices. The commission observed: “Even after collecting a substantial sum, approximately 25% of the total sale price, the developer neither signed a formal agreement nor provided possession of the plot. It would be unjust to keep the complainant waiting indefinitely for the delivery of the plot or an alternative, which is not even practically viable.”
In light of this, the commission has directed the builder to return the paid amount of Rs 24 lakh with 12% interest per annum and to additionally pay Rs 50,000 for mental distress, inconvenience, and legal expenses.
