Not giving completion certificate costs real estate company Rs 1 lakh
State consumer disputes redressal commission, Chandigarh, had directed a Delhi-based developer to pay Rs 1 lakh as compensation to a Zirakpur resident for unfair trade practices and deficiency in services.chandigarh Updated: Aug 28, 2014 13:58 IST
State consumer disputes redressal commission, Chandigarh, had directed a Delhi-based developer to pay Rs 1 lakh as compensation to a Zirakpur resident for unfair trade practices and deficiency in services.
Disposing of a complaint filed by Naveen Parkash Kashyap, 58, the consumer commission directed developer SMV Agencies Private Limited to obtain completion and occupation certificates from the competent authority within six months and pay the complainant Rs 15,000 as cost of litigation.
Kashyap in October 2006 had applied for a flat at Jaipuria Sunrise Greens, VIP Road, Zirakpur, a project of SMV Agencies Private Limited.
He claimed that he was misled by the developer that the apartment had the statutory approvals from various government departments and authorities. Besides, the developer had promised to give him possession of the flat by October 2008 as per the allotment letter, but the apartments were still not ready as of June 2014.
Denying any deficiency, SMV Agencies Private Limited submitted that the complainant was to be given flat’s possession by February 2009 under the instalment plan.
It was admitted that the possession was not given on the appointed date and the complainant admittedly received compensation for the delayed period at an inflated rate of 9% on the condition that he will raise no further claim.
Regarding completion certificate, the developer said the application for grant of completion certificate was filed with the authorities concerned and it was awaited.
In its order, the consumer commission said, “It clearly shows that the completion certificate has still not been issued to the developer by the competent authority, which is a clear cut deficiency in rendering service and unfair trade practice on their part.”