Consumer court directs builder to refund ₹52-lakh deposit

The State Consumer Disputes Redressal Commission has directed Omaxe Chandigarh Extension Developers Private Limited to refund ₹52,07,783 and pay an interest of 9% per annum for not giving possession of an apartment to the allottee within the stipulated time period

Chandigarh The State Consumer Disputes Redressal Commission has directed Omaxe Chandigarh Extension Developers Private Limited to refund ₹52,07,783 and pay an interest of 9% per annum for not giving possession of an apartment to the allottee within the stipulated time period.

The court also directed the company to pay ₹1 lakh to both complainants for causing mental agony and physical harassment and ₹30,000 as cost of litigation. (HT File)

The apartment, measuring 1,285 square feet, is part of The Lake Project in Mullanpur. It was purchased by Ritesh Mahajan and Rishabh Mahajan, both residents of Himachal Pradesh. The allotment letter was issued on April 15, 2016, but they were not given possession of the property within the stipulated period of 48 months till April 2020, after which they approached the commission.

Omaxe contended that the complainants’ being investors did not fall under the definition of consumers. In its response, it said that there was an arbitration clause in the allotment letter and the commission has no jurisdiction to decide this complaint and only an arbitrator can adjudicate it.

They adding that the petitioner had moved their office from Chandigarh, therefore the commission did not have territorial jurisdiction over the matter. They also attributed the delay to force majeure (unforeseeable) circumstances due to Covid.

Saying that the complaint was premature, they said that competent authorities had extended the period for completion of the project till December 31, 2022.

The commission observed that the builders failed to place any record or convincing documentary evidence that the complainants were not consumers. Regarding their objection with regard to arbitration, the commission observed that the issue had already been set at rest by the larger bench of the national commission. Regarding the force majerure circumstances, the commission observed that the lockdown in the country was announced on March 25 2020 and possession was to be offered only 21 days later.

The court also directed the company to pay ₹1 lakh to both complainants for causing mental agony and physical harassment and ₹30,000 as cost of litigation.