Forum directs developer to cough up ₹65,000 for delay in flat possession to a Chandigarh couple

The forum held that in case a builder fails to deliver possession on time, the consumers are under no obligation to accept possession at a belated stage

For delay in delivering possession of a flat, the state consumer disputes redressal forum has directed a developer to pay ₹65,000 as compensation on account of mental agony and harassment as well as litigation expenses to a Chandigarh-based couple.

The complainants had already paid ₹53.7 lakh and the remaining amount was to be paid at the time of delivery of possession, which never happened. (Getty Images/iStockphoto)

The forum directed developer ATS Estates Private Limited to refund ₹53.7 lakh paid by complainants Nikita Verma and her husband Nitin Verma of Sector 38 (West), Chandigarh, with 12% interest per annum.

“The forum held that in case a builder fails to deliver possession on time, the consumers are under no obligation to accept possession at a belated stage and can seek refund of the entire amount paid, along with a reasonable compensation in the form of interest,” said advocate Harkirat Singh Ghuman, counsel of the complainants.

The Vermas had booked an apartment in the project known as ATS Golf Meadows Lifestyle, located at Dera Bassi, in September 2014 for a total price of ₹61 lakh. As per the buyer agreement, the builder was to hand over the possession of the apartment within three years of booking, with a grace period of six months. The complainants had already paid ₹53.7 lakh and the remaining amount was to be paid at the time of delivery of possession, which never happened.

ATS Estates Private Limited denied any deficiency in service, saying that after the enactment of the Real Estate (Regulation and Development) Act, 2016 (RERA), the consumer commission had no jurisdiction to entertain the complaint.