Consumer commission directs firm to refund Rs 29 lakh for not giving possession of flat in time

Ishrat S Banwait

Tribune News Service

Chandigarh, March 15

The State Consumer Commission has come down heavily on a builder for not giving the possession of a flat in time to an Army man, owing to which he was forced to live on a rented accommodation post retirement.The commission has directed Ansal Properties and Infrastructure Limited to refund the amount paid by Milap Chand, the Armyman, and to pay a fine of Rs 1.30 lakh.A complaint was filed by Milap Chand and his wife Sulochna Rani against the company, its two directors and managing directors. The complaint stated that while serving the Indian Army, Chand had planned to settle down near Chandigarh post retirement. He had booked a flat in ‘Golf Links II’ in Sector 116 of Mohali in July 2012. While the basic cost of the flat was Rs 42.33 lakh, Chand had initially paid Rs 29.59 lakh. The floor buyer agreement was signed in the same year and possession was to be given within three years, along with a grace period of six months. However, when Chand visited the site, no development had taken place. He was thus forced to take a house on rent after his retirement in 2015.In December 2016, the company sent an e-mail to Chand stating that the possession was delayed and they would pay the interest. Chand was asked to take possession of another flat, which he had agreed to. However, the company failed to hand over the possession of that flat as well. Chand visited the site in August 2015, then in March 2016 and again in July 2017, but no development had taken place at the project site. Chand then asked the company to refund his money several times, but in vain.The company had replied that Chand was not a “consumer” as he bought the property for commercial purposes. They said the complainant defaulted in payments regularly and willfully breached the terms and conditions. Stating that the possession time was tentative and no fixed time was promised, it also said that the commission had no jurisdiction in the case as the property was in Mohali.The commission observed, “Not mentioning the exact date of delivery of possession of the unit(s) in the buyer’s agreement is an unfair trade practice”. It thus ordered the builder to refund Rs 29.59 lakh to the complainants and pay Rs 1 lakh as fine for causing mental agony and physical harassment, along with Rs 30,000 as the cost of litigation.