Punjab RERA orders Zirakpur developer to pay ₹1.25L compensation

According to the complaint, the developer misrepresented that the project was RERA-registered and promised immediate possession, along with amenities such as a club house and gated township facilities

The Punjab Real Estate Regulatory Authority (RERA) has directed Gunjan Land Developers, Zirakpur, to pay ₹1.25 lakh as compensation and litigation costs to two homebuyers from Amritsar for failing to deliver possession of a flat and not refunding the full amount despite a settlement agreement.

The developer has been directed to pay the amount within 90 days of the order. (iStock)

The order, pronounced by adjudicating officer RS Rai, came on a complaint filed by Sunita Sharma and Ajay Kumar, who had booked Flat Number 322 in the GLD Homes project at Kharar, Mohali. The complainants stated that they paid ₹16.44 lakh between August 2022 and June 2023 against a total sale price of ₹27.5 lakh. A buyer’s agreement was signed in August 2022.

According to the complaint, the developer misrepresented that the project was RERA-registered and promised immediate possession, along with amenities such as a club house and gated township facilities. However, when the buyers visited the site in October 2023, they found no development on the ground. Ajay Kumar also alleged that the company’s representative misbehaved with him and physically assaulted him when he questioned the delay. A criminal complaint was subsequently filed.

Following this, both parties entered into a settlement on October 5, 2023, under which the developer agreed to refund the amount paid. While the buyers received ₹5.5 lakh through RTGS, two cheques for ₹7 lakh each, issued by the developer, were dishonoured, leaving a large portion of their investment unpaid.

Despite being served notice by RERA, the developer did not appear before the authority and was proceeded against ex parte. After examining the evidence, including the buyer’s agreement, payment records and the dishonoured cheques, the adjudicating officer concluded that the developer had violated provisions of the RERA Act.

“Since the complainants neither received possession of the flat nor the full refund under the settlement deed, they suffered harassment, mental agony and litigation expenses,” the order noted. The authority awarded ₹1 lakh as compensation and ₹25,000 as litigation costs.

The developer has been directed to pay the amount within 90 days of the order. The complainants have also been advised to pursue other claims, including refund of the principal amount and further damages, through appropriate legal channels.

Counsel for the complainants, advocate Shahnawaz Khan, said, when the buyers approached RERA, the builder evaded multiple notices of appearance. “It was eventually revealed that he had been lodged in jail in connection with another case. Despite repeated opportunities, the builder failed to appear before the authority, although his counsel was seen making appearances in other cases. Given the builder’s consistent absence, RERA proceeded ex parte and delivered judgment in favour of the buyers,” he said.