A local builder has been penalized with a hefty fine of Rs 1.27 crore by the District Consumer Disputes Redressal Forum in Chandigarh for failing to hand over possession of a flat within the stipulated time. The order was passed in favor of a homebuyer who had booked a residential apartment in the city's Sector 91 area.
Case Details
The complainant, a resident of Mohali, had booked a flat in the project 'Green Avenue' launched by the builder in 2014. The total cost of the flat was approximately Rs 48 lakh, which was paid by the buyer through bank loans and personal savings. As per the agreement, possession was to be handed over within 36 months, i.e., by 2017. However, the builder failed to meet the deadline, leaving the buyer in a lurch.
Consumer Forum's Verdict
After hearing the case, the consumer forum held the builder guilty of deficiency in service and unfair trade practice. The forum directed the builder to pay Rs 1.27 crore to the complainant, which includes compensation for mental agony, litigation costs, and interest on the amount paid. The forum also ordered the builder to complete the construction and hand over possession within six months, failing which additional penalty would be imposed.
Key Points from the Judgment:
- The builder was directed to pay Rs 1.27 crore as compensation and interest.
- The amount includes Rs 50 lakh for mental agony and harassment.
- An interest of 12% per annum on the deposited amount from the date of payment till possession is also awarded.
- The builder must complete the project and hand over possession within six months.
The forum observed that the builder had taken substantial amounts from the buyer but failed to adhere to the timeline, causing immense financial and emotional distress. This verdict serves as a strong reminder to real estate developers to honor their commitments and timelines.
Impact on Homebuyers
This case highlights the growing concerns among homebuyers regarding delayed possession and the lack of accountability in the real estate sector. Consumer courts have been increasingly imposing heavy penalties on errant builders to protect buyers' rights. Legal experts advise homebuyers to carefully read agreements and seek timely legal recourse in case of delays.
The builder has the option to appeal against the order in a higher court. However, the verdict sets a precedent for similar cases where builders fail to deliver on their promises.
