CHANDIGARH: The district consumer disputes redressal commission has mandated a real estate developer in New Chandigarh to refund ₹12.63 lakh to two homebuyers, alongside a 9% annual interest due to deficiency in service. Additionally, the commission awarded ₹50,000 for mental agony and legal expenses.
In a complaint lodged by Manveet Singh Johar and Simran Arora, residents of Sector 50-B, Chandigarh, the homebuyers detailed their booking of a 150 sq yard residential plot in January 2015 within a project in New Chandigarh. They reported having paid 30% of the basic sale price, totaling ₹12,63,834, via receipts from January and March 2015.
The complainants claimed that despite receiving their payment, the developer failed to provide a buyer’s agreement or issue an allotment letter. They further alleged that in 2016, requests for additional payments were made, but still, no agreement was provided. The buyers were informed that the necessary project approvals were still pending, resulting in delays. By 2021, they received letters offering a refund with interest instead of an allotment, a proposal they declined, requesting the completion of the allotment and agreement.
The developer, for its part, contended that the complainants ceased payments after March 2015 and ignored opportunities to finalize the allotment letter and buyer’s agreement, despite multiple reminders from March 2015 to July 2016. The developer asserted that the complainants remained in default and that it voluntarily offered a full refund with interest in 2021, arguing that the complaint was inadmissible and barred by limitation.
The commission observed that the buyers had paid nearly 30% of the total sale amount but had not received an allotment letter or buyer’s agreement. It concluded that demanding additional payments without fulfilling these preliminary steps constituted an unfair practice.
Furthermore, the commission found no specific allotment for the plot in question, which made it impossible to mandate possession. Citing precedents from the Supreme Court and the National Consumer Commission, the panel determined that the cause of action continued as long as the developer retained the buyers’ funds.
The commission mandated the developer to reimburse ₹12.63 lakh along with 9% simple interest from the date of deposit and to compensate ₹50,000 for mental anguish and legal costs.
