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Home / Cities / Builder directed to pay penalty for delaying possession of flat

Builder directed to pay penalty for delaying possession of flat

cities Updated: Aug 06, 2019, 21:04 IST
Kapil Datta
Kapil Datta

GREATER NOIDA: The district consumer forum directed a builder to pay a penalty along with a 12% annual interest for delaying possession to a flat allottee. The possession was given in 2016, after a delay of over 30 months from the scheduled possession in 2013.

In June 2010, the builder had offered a fully furnished flats and the complainant Akhil Kumar registered for the scheme. According to the builder, all flats would be fully furnished, have all electrical and electronic gadgets, 24-hour water supply, power backup and security.

Kumar was allotted a flat at the builder’s project in Sector Zeta 1, Greater Noida. He paid the entire amount of ₹53.22 lakh to the builder and a builder-buyer agreement was signed on March 10, 2011. Possession was scheduled to be given in June 1, 2013.

When he failed to possession at the promised time, he sent several letters to the builder enquiring about the status of the project and when he would get possession. The builder did not reply to his letters. However, the builder issued him no dues certificate on February 12, 2015.

The builder wanted that he should withdraw the penalty clause before he was given possession. The builder gave him possession on February 15, 2016, and promised that the delay penalty will be paid soon. On the builder’s promise, he took possession. As the builder was not responding to his requests to pay the delay penalty amount, he filed a complaint with the district consumer forum.

In spite of repeated notices to the builder, no one appeared before the forum in 2017, and it was ordered that the case would be decided ex parte.

The forum has now directed the builder to pay the penalty amount along with an annual interest of 12%. Besides that, the builder has been directed to pay ₹15,000 towards mental and physical suffering of the complainant and ₹5,000 towards legal expenses,” advocate Jagdeep Singh said.

In another complaint, the forum directed another Noida based builder to refund ₹2.10 lakh to complainant Nishant Saxena, who had booked a flat in 2008 in the builder’s project along the NH-24 in Hapur and paid the booking amount of ₹2.10 lakh. Although possession was to be given in 2010, the complainant was neither given possession of the flat nor any refund till 2016.

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