The District Consumer Disputes Redressal Commission has directed a developer to refund ₹25.73 lakh with interest and pay ₹2.5 lakh as compensation and litigation costs in a case where a homebuyer waited over 14 years for the possession of his residential plot in Sunny Enclave after paying more than three-fourths of the sale price.
The commission comprising president SK Aggrawal and its members Paramjeet Kaur and Lt Col JS Bath held that Bajwa Developers and its managing director failed to prove that the plot was ready for possession, while the buyer established that despite repeated representations and a legal notice, he did not receive the plot.
The complainant, a Bathinda resident, entered into an agreement to purchase plot No 1225 at Sunny Enclave, Jandpur, on July 16, 2011, for a total sale consideration of ₹33.80 lakh. Before executing the agreement, he already paid ₹17.73 lakh as earnest money in three instalments. He subsequently paid a total of ₹25.73 lakh towards the plot.
According to the complaint, the developer assured the complainant that the project had all approvals and that possession would be delivered after completing development work. The agreement fixed December 18, 2011, as the date for handing over possession.
However, when the buyer visited the project site in 2016, he found that development work had not been completed. In October 2019, the developer informed him that it was in the process of executing sale deeds and issuing possession letters. After receiving no further progress, the buyer submitted a written representation in April 2021 and later served a legal notice seeking a refund of the amount paid.
{{/usCountry}}However, when the buyer visited the project site in 2016, he found that development work had not been completed. In October 2019, the developer informed him that it was in the process of executing sale deeds and issuing possession letters. After receiving no further progress, the buyer submitted a written representation in April 2021 and later served a legal notice seeking a refund of the amount paid.
{{/usCountry}}In their written reply, the developer denied any deficiency in service and argued that the complaint was barred by limitation. It also claimed that the complainant had remained silent for nearly 12 years and concealed material facts. However, the developer did not produce any evidence to show that the plot was ready for possession or that the buyer refused to accept possession.
After examining the agreement and payment records, the commission observed that the complainant proved the payment of ₹25.73 lakh and that the developer had failed to fulfil its contractual obligation to hand over possession within the agreed timeline.
The commission partly allowed the complaint and directed Bajwa Developers and its managing director, who were held jointly and severally liable, to refund ₹25.73 lakh with 9% annual interest from the respective dates of deposit within 30 days. If the amount is not paid within the stipulated period, it will carry 12% annual interest until actual payment.
The commission also awarded ₹2.5 lakh towards compensation for mental agony, harassment and litigation expenses.