Chandigarh: Panel orders attachment of real estate project to recover ₹14 lakh for failure to hand over home possession

The order was passed on an execution application filed by homebuyer Bhawana Nagar under Section 71 of the Consumer Protection Act, 2019, against Sushma Buildtech Limited, its director Binder Pal Mittal and two others

The State Consumer Disputes Redressal Commission, Chandigarh, has ordered the attachment of the Sushma Grande NXT project in Zirakpur to recover ₹14.5 lakh from a real estate developer in a homebuyer’s case.

The deputy commissioner has been directed to ensure compliance before the next hearing on December 9. (Getty Images/iStockphoto)

In its October 28 order, the commission directed the Mohali deputy commissioner-cum-collector to attach the project at Tower C and appoint a receiver to facilitate recovery of around ₹14.5 lakh. The amount is to be recovered as arrears of land revenue. The district administration has been asked to submit a compliance report by the next date of hearing on December 9.

The order was passed on an execution application filed by homebuyer Bhawana Nagar under Section 71 of the Consumer Protection Act, 2019, against Sushma Buildtech Limited, its director Binder Pal Mittal and two others.

The commission’s directions came after the State Bank of India, Sector 17, Chandigarh, informed it that there was no balance in the judgment debtors’ bank account. The bank, however, stated that if any amount was credited to the account in future, ₹14.5 lakh would be kept on hold.

Following this, the homebuyer provided details of the builder’s project and sought attachment of its properties to recover the outstanding amount. The dispute pertains to a flat booked by Nagar in Sushma Grande NXT, Gazipur, Zirakpur. As per the agreement executed on July 9, 2021, the builder was required to hand over possession by September 9, 2022, but allegedly failed to meet the deadline.

The commission had directed the builder to hand over possession of the flat along with the occupation certificate within 45 days. It had also ordered the payment of 9% interest on the amount deposited by the homebuyer, with the rate to increase to 12% in case of further delay, besides ₹75,000 as compensation for harassment.

However, the builder allegedly failed to comply with the directions, following which the homebuyer initiated execution proceedings. During the proceedings, the commission had also issued non-bailable warrants against the company’s directors over non-compliance with its order.

The matter will now come up for further hearing on December 9.