Developer to pay Rs 50K for not giving showroom

  • HT Correspondent, Hindustan Times, Chandigarh
  • Updated: Sep 09, 2014 15:25 IST

The consumer disputes redressal commission, Chandigarh, has directed a developer to pay Rs 50,000 as compensation for unfair trade practices and deficient services for failing to deliver possession of showroom even after six years.

The consumer commission also directed the real estate developer, Shalimar Estates Private Ltd, to refund Rs 15.81 lakh deposited by the complainants — Sanjeev Goyal, a resident of Sector 15 in Panchkula and Karanjit Singh, a resident of Sector 70, SAS Nagar — with 12% interest along with Rs 10,000 as cost of litigation.

Goyal and Karanjit Singh had jointly applied for the allotment of a commercial showroom in February 2006. They claimed that despite making payment the developer did not start construction at the site, where the said unit was allotted.

The builder had sought dismissal of the complaint saying that the complainants are not consumers as they booked the showroom for commercial purpose for carrying on commercial activities on a large scale to earn huge profits.

Explaining the delay in handing over the possession, they said the other buyers who had invested had not paid due installments, due to which they suffered a huge loss. The commission on September 1 held, “The complaint involves the consumer dispute as they hired the services of the developer for the purchase of showroom for earning their livelihood by means of self-employment.”

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