E-Paper
Mohali: Refund ₹44L or hand over flat to buyer, panel directs builder
Complainant Amit Kashyap of Shimla had booked a 3BHK apartment in the WWICS project in Mohali in August 2012. Under the apartment agreement signed on August 23, 2012, the builder agreed to deliver possession within 36 months, making August 22, 2015 the committed possession date
The district consumer disputes redressal commission, Mohali, has directed WWICS Estates to either hand over a Shimla resident’s flat with all approvals and execute the sale deed, or refund ₹44.62 lakh with 15% annual interest after finding that the builder failed to deliver legal possession within the agreed timeline.
The commission, headed by president Kuljit Pal Singh along with members Ranvir Kaur and Ramesh Kumar Gupta, also awarded ₹50,000 as compensation for mental harassment and litigation expenses.
Complainant Amit Kashyap of Shimla had booked a 3BHK apartment in the WWICS project in Mohali in August 2012. Under the apartment agreement signed on August 23, 2012, the builder agreed to deliver possession within 36 months, making August 22, 2015 the committed possession date.
Kashyap paid ₹44.68 lakh towards the apartment by May 2017. However, he alleged that despite collecting almost the entire sale consideration, the developer failed to complete the project and repeatedly tried to offer possession of an unfinished flat. He also claimed the company later demanded an additional ₹9.36 lakh despite not obtaining the required completion certificate.
WWICS Estates contested the complaint, arguing that it had offered possession in October 2017 and again in May 2018 after obtaining a partial completion certificate. The company submitted that over 400 families were already residing in the project and blamed the delay in obtaining the final completion certificate on government authorities. It also said the complainant still owed about ₹5.35 lakh towards the flat and was entitled only to delay compensation under the builder-buyer agreement.
The commission rejected the builder’s stand, holding that a partial completion certificate did not amount to legal completion of the project. It noted that the final completion certificate was issued only on June 2, 2023, several years after the contractual possession date.
Referring to the Punjab Apartment and Property Regulation Act (PAPRA), the commission said it was the promoter’s responsibility to obtain the completion and occupancy certificates before offering possession. It observed that any offer of possession made before securing these approvals had no legal value.
Holding the builder deficient in service, the commission directed WWICS Estates to hand over complete physical possession of the flat along with completion and occupation certificates and execute the sale deed.
It further ordered the company to pay delay compensation at the rate of ₹5 per sq ft per month of the flat’s super area from August 22, 2015, until possession is delivered, after adjusting any amount already paid.
Alternatively, if possession is not taken, the commission directed the builder to refund ₹44.62 lakh with 15% annual interest from the date of deposit until payment. It also clarified that if the buyer opts to take possession, he will have to pay the remaining sale consideration without any interest or penalty. The builder has been directed to comply with the order within 60 days.
