E-Paper
₹3 lakh relief to New Chandigarh flat buyer over delayed possession
The commission also ordered the builder to pay ₹3 lakh as compensation and interest on the amount deposited by the buyer for the period during which he had to arrange accommodation on his own.
The District Consumer Disputes Redressal Commission, Mohali, has directed Address Infrastructure Private Limited to hand over a flat in its New Chandigarh housing project to a homebuyer after holding that the builder failed to deliver possession within the agreed timeline.
The commission also ordered the builder to pay ₹3 lakh as compensation and interest on the amount deposited by the buyer for the period during which he had to arrange accommodation on his own.
The order stems from a complaint filed by Arvinder Arora of The Address Society in New Chandigarh. Arora said that he booked a 3BHK flat, under an agreement for sale dated June 11, 2022, for ₹40.40 lakh, including GST. He paid ₹32 lakh towards the sale consideration, while the remaining contractual balance stood at ₹8.40 lakh.
According to the complaint, Clause 7.1 of the agreement required the builder to complete construction and hand over possession by March 2023. Arora alleged that construction remained incomplete and that the builder repeatedly postponed possession, first to February 2024, then December 2024, and later to July-August 2025.
He further told the commission that he arranged accommodation at his own expense from April to September 2023. The builder later provided alternative accommodation from October 2023 but did not reimburse electricity and utility charges.
He also alleged that the company demanded additional amounts by including extra external development charges (EDC) and insisted on a no-dues certificate before offering possession.
The builder denied the allegations and claimed the complaint was not maintainable. It argued that the total sale consideration was ₹41.67 lakh and that the complainant had defaulted on payments by failing to deposit the outstanding ₹9.67 lakh despite repeated reminders.
The company also said that it had provided alternative accommodation at its own expense and later cancelled the allotment of the flat on November 26, 2025, under the agreement because of the alleged payment default.
After examining the record, the commission found that the buyer had deposited ₹32 lakh against the agreed sale consideration of ₹40.40 lakh, leaving a balance of ₹8.40 lakh. It held that the builder failed to complete construction and deliver possession by March 2023 as required under the agreement, amounting to deficiency in service.
The commission directed the complainant to pay the remaining contractual balance of ₹8.40 lakh, after which the builder must hand over possession of the flat with the occupation certificate, completion certificate, promised amenities and execute the sale deed.
It also ordered the builder to pay 9% annual interest on the deposited amount from April to September 2023, ₹3 lakh as compensation, and continue providing alternative accommodation until possession is delivered.
