Builder to refund ₹4 lakh to Mohali resident for delay in plot possession

Poonam Sharma, a resident of Phase 10, Mohali, had booked a 150 square yards plot in 2011 through Geetu Construction Private Limited, Peer Muchalla, and was not handed over the plot’s possession even after 11 years

The District Consumer Disputes Redressal Commission-1 has directed a builder to refund ₹4 lakh paid by a Mohali resident for a plot in a residential society in Sector 113, Mohali, after the plot’s possession was not handed over even after 11 years.

The consumer commission has directed the builder to refund ₹4 lakh and pay a compensation of ₹10,000 to the complainant for causing mental agony and harassment, and for litigation costs. (Getty Images)

Poonam Sharma, a resident of Phase 10, Mohali, had booked a 150 square yards plot in 2011 through Geetu Construction Private Limited, Peer Muchalla.

She submitted before the commission that the construction firm’s director Vikas Goyal and member Manpreet Singh, alias Sonu, had assured her that they had already secured necessary permissions from all authorities.

Therefore, she paid ₹1 lakh in 2011 and ₹3 lakh in 2012. However, the project was not developed and she was given no intimation. When she demanded her money back, they refused.

In their reply, the firm claimed that the complainant only paid an amount of ₹4 lakh against the total price of ₹26.25 lakh and had defaulted on 85% of the plot’s amount, jeopardising the completion and handover of the project in totality, and had no right to get any relief.

The firm also submitted that the complaint filed in March 2021 was barred by delay and latches, and prayed for its dismissal.

The commission observed that the letter issued by the builder to the complainant after payment did not carry any date or details of plot number. “In the absence of such important details, no person is expected to deposit such a huge amount as demanded,” it observed.

Taking note of the fact that the amount of ₹4 lakh was accepted by the opposite parties when they did not have the necessary approvals from competent authorities, the commission directed then to refund the amount and pay a compensation of ₹10,000 to the complainant for causing mental agony and harassment, and for litigation costs.