Realty firm gets the stick for not giving possession of plots

  • HT Correspondent, Hindustan Times, Chandigarh
  • Updated: Jun 17, 2014 11:10 IST

The state consumer disputes redressal commission, Chandigarh, directed real estate developer Emaar MGF Land Limited to pay Rs 1.5 lakh each as compensation to two complainants for misleading them and not abiding by the commitments.

The commission held t he real estate developer guilty of “unfair trade practices and deficient services”, as it failed to give possession of allotted plots in its project “Mohali Hills”.

“The construction at the site where the apartment was allotted to the complainants could not be started. The developer, thus, misled the complainants that they would be given the physical possession of apartment within two years, but they failed to abide by their promise. By not delivering the physical possession of allotted apartment to the complainant by the stipulated date, even after the receipt of more than 95% of the price, the developer was not only deficient in rendering service, but also indulged into unfair trade practice,” held the consumer commission while disposing of two separate complaints on June 6.


Manjit Kaur of Sector 16,Chandigarh, was allotted a residential plot in the project “The Terraces” at Mohali Hills, Sector 108, SAS Nagar, floated by Emaar MGF Land Limited. As per agreement, she was to be handed over the possession of the plot in June 2009, but the plot was not delivered as its construction had not started despite the assurance of delivery.

The other complaint was filed by two brothers — Kapil Sabharwal and Komal Sabharwal, residents of Sector 15, Panchkula. They too had been allotted a plot in “Augusta Park”, Mohali Hills, Sector 109, SAS Nagar. As per agreement, they were to be handed over possession in June 2010.


Emaar MGF Land Limited admitted delay in start of construction and had sought dismissal of the plaints for “being gross abuse of the process of law”. They had claimed that the complainants themselves failed to take possession of the plot.


Apart from the compensation, Majit Kaur is entitled to refund of Rs 32.12 lakh, along with 12% interest with RS 20,000 towards cost of litigation. Sabharwals would also be getting possession of the plot complete in all aspects within three months. The developer would pay a penalty of Rs 50 per square yard per month from June 2010 till the delivery of possession of plot for delay as per the agreement and Rs 20,000 as cost of litigation.

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