Developer to pay Rs 60,000 compensation for not carrying out development work

For failing to carry out development works in a housing project floated by real estate developer, state consumer disputes redressal commission directed the developer to pay Rs 60,000 as compensation to Sector 7 resident.

For failing to carry out development works in a housing project floated by real estate developer, state consumer disputes redressal commission directed the developer to pay Rs 60,000 as compensation to Sector 7 resident.

Disposing of complaint filed by Brij Mohan Jain, the consumer commission directed Shipra Estate Limited Promoters of Capital City Chandigarh to refund Rs 19.58 lakh with 10% interest, apart from the compensation amount.

Jain had booked an apartment in the project on May 7, 2012, and had paid rs 19.58 lakh in various installment towards the price of the apartment. Jain alleged that even after more than two years, there was no development of the site.

Denying deficiency, real estate developer said they could not develop the project due to pendency of writ petitions in the Punjab and Haryana High Court relatied to land acquisition of a road leading to the project.

Consumer commission said the developer "has claimed delay on the ground of force majeure conditions but, in the instant case, there had been absolutely no progress for around two and a half years. The company despite knowing that there was delay and uncertainty in starting construction, did not accept the genuine request of the complainant for refund."