The District Consumer Disputes Redressal Commission in Ludhiana has imposed a significant penalty on a real estate developer for failing to deliver possession of a booked apartment. The commission has ordered the infrastructure builder to refund the entire deposited amount along with substantial interest and additional costs to the aggrieved homebuyers.
Commission's Order: Refund with Interest and Costs
In a decisive order, the commission has directed Green Space Infraheights Private Limited, based in Panchkula, Haryana, to return the sum of Rs 12.42 lakh to the complainants. This amount represents the total money deposited by the buyers with the builder. The commission mandated that this refund must be paid with an interest at the rate of 12% per annum, calculated from the respective dates of each deposit until the final payment is made.
The builder has been given 30 days from the receipt of the order copy to comply with this directive. Furthermore, the commission ordered the opposite party to pay a composite cost of Rs 20,000 to the complainants, Monica and her son Ishaan Shingari, residents of Kichlu Nagar in Ludhiana.
Chronology of the Failed Housing Project
The case details reveal a prolonged ordeal for the homebuyers. Green Space Infraheights had initiated an affordable group housing project named 'Green Space' at Billah village, Sector 14, Panchkula. The project was launched under a license dated August 14, 2014, and had approval for building plans dated December 9, 2014.
Trusting the builder's assurances of timely delivery, the complainants applied for allotment and paid Rs 75,600 as a registration amount on March 29, 2019. Over the following months, they continued making payments as demanded by the builder, culminating in a total payment of Rs 12,42,150. The builder acknowledged this total sum through a letter dated September 21, 2020, and a receipt dated October 17, 2020.
Despite completing the payments, when the complainants approached the builder to take possession, they were neither given the flat nor could they even see the allotted unit. The complainants stated that the project remained incomplete. They sent numerous reminders and letters to the builder, pleading for possession, but these efforts yielded no result.
Deficiency in Service and Ex-Parte Proceedings
The complainants argued that they suffered significant mental pain, agony, and harassment due to the builder's deficient service and failure to honour the agreement. They had sought directions for the builder to either hand over possession or refund the entire amount of Rs 12,42,150 with interest at 24% per annum, along with compensation of Rs 1 lakh.
Notably, after a notice of the complaint was served, the builder did not appear before the commission to present its side. Consequently, the commission proceeded to hear and decide the case ex-parte (in the absence of the opposite party).
After examining all documents and evidence on record, the commission concluded that the complainants were entitled to relief. It held that there was clear deficiency in service and engagement in unfair trade practice on the part of Green Space Infraheights Private Limited. The order for a refund with interest and costs serves as both compensation for the buyers and a penalty for the builder's failure to fulfil its contractual obligations.
