Realtor told to pay Rs 1 lakh compensation

  • HT Correspondent, Hindustan Times, Chandigarh
  • Updated: Sep 09, 2014 15:27 IST

The state consumer disputes redressal commission, Chandigarh, has directed an SAS Nagar-based developer to refund Rs 28 lakh with 12% interest besides paying Rs 1 lakh as compensation for unfair trade practices and deficient services for misleading an NRI and failing to hand over the possession of flat to him.

Disposing of a complaint filed by Gurdeep Singh Saini, the NRI, the commission also directed SAS Nagar-based Chandigarh Overseas Private Limited to pay Rs 20,000 as cost of litigation.

Saini, who is based in the United Kingdom, applied for a flat in March 2010 with the Chandigarh Overseas Private Limited in Industrial Knowledge (Fashion Technology) Park, Sector 90, SAS Nagar.

The price of the said flat was Rs 29.50 lakh of which he paid Rs 28 lakh and as per the agreement.

The flat was supposed to be completed by March 2011, but he is still awaiting possession. On visiting the site, Saini said the construction of the flat allotted to him had been halted, after raising it up to the third floor.

No one appeared on behalf of the developer despite summons and was proceeded ex parte.

The consumer forum on September 1 held, “The developer by making misleading representation to the complainant duped him of his hard-earned money and utilised the same for a long time and failed to complete the construction of flat allotted by March 2011 as agreed. Thus, the question of delivery of possession of the flat to the complainant did not at all arise. Thus, the developer was not only deficient in rendering service but also indulged in unfair trade practices.”

“The developer had no right to retain the complainant’s money without rendering him any service.

After making payment of Rs 28 lakh for the flat, no progress was made at the site within the stipulated date. Not only this, the complainant shall also not be able to purchase a flat at the same price at which he was allotted the same due to escalation in real estate prices,” it observed.

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