Consumer Commission Orders Refund for Delayed Plot Possession
The District Consumer Disputes Redressal Commission, Chandigarh, has directed a builder to refund Rs 13,40,110 to a homebuyer, along with interest from the dates of deposit, for failing to deliver possession of a plot within the committed timeline. The commission also imposed Rs 50,000 as compensation for harassment and litigation expenses.
Observing that a homebuyer cannot be made to wait indefinitely, the commission stated that failure to deliver possession within the agreed period constitutes a deficiency in service and unfair trade practice.
Complainant's Grievance
Daljeet Singh Malhotra, a resident of Chandigarh, filed the complaint through advocate Anirudh Gupta. He booked a 10-marla plot in Sector 86, Mohali, with the Akash Co-Operative House Building Society under their housing project scheme. He was allotted registration number 519 after paying the booking amount of Rs 13,40,110 on December 14, 2005. Possession was promised within three years but was never delivered.
The project was later taken over by Preet Land Promoters and Developers Pvt Ltd, which issued an allotment letter on July 17, 2016, for a plot but without specifying any possession timeline. Despite repeated visits and calls, Malhotra discovered in July 2018 that no development had taken place at the site.
Builder's Defense Rejected
The builder opposed the complaint, claiming the delay was due to circumstances beyond its control. It argued that it acted in good faith, kept the complainant informed, and took reasonable steps to mitigate the impact of unforeseen events, therefore the delay should not be considered a deficiency in service or breach of contract.
After hearing arguments, the commission rejected the builder's defense, noting that the unreasonable delay in offering possession entitled the complainant to a full refund under Clause 11.3 of the agreement. The commission directed the builder to refund the principal amount with interest from the respective dates of deposit until realization, along with Rs 50,000 as compensation for harassment and litigation costs.
