Realty major asked to pay ₹36.5 lakh for flat delay

Forum slaps additional fine of ₹5 lakh on Parsvnath Developers for mental agony

October 14, 2017 11:47 pm | Updated 11:47 pm IST - NEW DELHI

The Delhi State Consumer Disputes Redressal Forum has ordered Parsvnath Developers to refund ₹36.53 lakh to a homebuyer for delay in possession of his flat. The panel further directed the developers to pay an additional ₹5 lakh to the complainant as compensation for harassment and mental agony faced by him.

The complainant, Narender Kumar Dhameja, had alleged that he had booked a flat in a project under Parsvnath Developers in Ghaziabad in 2007. According to the agreement, the construction of the same was to be completed by 2008 itself.

‘Focus on other projects’

He alleged that the money paid by him was used by the developers in other projects. “Submission of the complainant is that the opposite party, instead of spending the money on the project in question, invested the same in other projects for expansion of his business. The complainant was told that due to exponential prices of the flats, they wanted to cancel the allotment and sell the flat to a third person,” read the order.

In their reply to a legal notice slapped by the flat buyer in 2012, the developers said that the delay had happened due to non-availability of building materials and disputes with contractors.

“The opposite party stated that active measures were being taken by mobilising resources, rescheduling work and augmenting labour force at the site to expeditiously complete the remaining work,” the reply to stated.

Recession reason

The developers also stated that because of the global recession that hit the economy in 2009, the real estate sector had been affected which had resulted in the obstruction of the construction.

Referring to previous judgments passed by the National Consumer Disputes Redressal Forum, the state commission rejected the argument that the economic slowdown had resulted in the project being stalled.

“There is no allegation of any lockout or strike by the labourers at the site of the project. There is no allegation of any slowdown having been resorted to by the labourers of the opposite party or the contractors engaged by it in the project. I find no merit in the contention,” read the order that had been passed by the commission.

‘House dream shattered’

Holding the developers guilty of deficiency of services, the state commission said: “Hard-earned money of house buyer is being used by the builder for expanding their business by way of investing in other projects. Dreams of the complainant to have his own house is shattered.” The commission directed the developers to refund the amount to the flat buyer within 90 days. Further, the developers were also asked to pay ₹50,000 to the complainant as litigation charges.

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