Parsvnath to pay monthly fine, Rs 1 lakh for construction delay | chandigarh | Hindustan Times
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Parsvnath to pay monthly fine, Rs 1 lakh for construction delay

The district consumer disputes redressal forum, Panchkula, has slapped a fine of Rs 1.11 lakh on Parsvnath Developers Ltd for delay in construction of flat booked by a city resident. The builder has also been asked to pay Rs 8,900 per month as penalty till the date of handing over the possession of the housing unit.

chandigarh Updated: May 20, 2015 20:53 IST
Vinod Kumar

The district consumer disputes redressal forum, Panchkula, has slapped a fine of Rs 1.11 lakh on Parsvnath Developers Ltd for delay in construction of flat booked by a city resident. The builder has also been asked to pay Rs 8,900 per month as penalty till the date of handing over the possession of the housing unit.

Anurag Goyal had booked a flat measuring 1,780 square feet at Parsvnath Royal, Panchkula, and paid a booking amount of Rs 8.9 lakh on December 20, 2010 and the buyer agreement was executed on February 14, 2011. Goyal claimed she paid Rs 42.66 lakh in total.

As per the buyer agreement, the builder company was to hand over the possession of the flat in 36 months from the date of commencement of construction of the particular block in which the flat was located with an additional grace period of six month.

The forum, comprising president Dharampal and member Anita Kapoor, observed that the builder did not mention any specific date from which the construction would start.

“At the time of executing the agreement, the company was not sure when it will be able to start the construction of the flat and hand the possession over to the complainant,” said the forum.

The complainant further contended that on visit to the site, she found no construction activity going on. The builder issued a letter on July 1, 2014, threatening the complainant to cancel the flat for not paying the instalment.

The complainant sent a legal notice to the builder on September 9, 2014, urging not to cancel the flat as she had already paid more than 73% amount of the total sale consideration.

The builder replied t the legal notice on October 3, 2014, stating that the delay in handing over the flat was due to the recession in the real estate sector.

The forum in the order added: “The sole defense taken by the builder for delay is recession in the realty sector. The company, however, failed to produced any data to show that there was a global recession in the Indian market and, if so, to what extent. In such a situation, it cannot be held that they were affected by recession during the relevant period.”