Builder told to hand over flat in 45 days, pay Rs 75K compensation

A builder cannot cancel an allotment of a flat, especially when the purchaser has already paid a substantial amount against total consideration price. While making the observation the State Consumer Disputes Redressal Commission, Chandigarh, has set aside the cancellation of a flat and directed a builder to hand over its physical possession after obtaining a completion certificate within 45 days to a city resident. It has also directed the builder to pay a compensation of Rs 75,000 for not giving possession of the flat within the promised timeframe.

Bhavna Nagar, a resident Sector 44, Chandigarh, in a complaint filed before the commission through advocate Narender Yadav said that she had purchased a flat

in the housing project launched by SBL Builder Private Limited in Zirakpur.

She said that as per the agreement of sale dated July 9, 2021, the builder agreed to hand over the possession of the flat on September 9, 2022, but failed to do so.

She said that the flat was offered to her on August 28, 2024, and that too without completion and occupation certificate. She said that of the total price of Rs 51.84 lakh for the flat, she had already paid Rs 51.27 lakh to the builder, which the latter denied.

The builder said that the delay occurred due to Covid 19 as the government had imposed many restrictions.

The builder also alleged that the complainant remained a wilful defaulter while making the payment of the outstanding amount despite demand letters. Due to this the allotment of the flat was cancelled vide letter dated September 26, 2024.

After hearing the arguments the State Commission rejected all contentions raised by the builder. The commission said the pandemic took place much prior to the promised date. It said that if the builder was at fault in not delivering possession of the flat/plot by the stipulated date, it cannot expect the allottee to go on paying instalments.

The commission said that in view of this the builder had been directed to hand over the physical possession of the flat complete in all aspects after obtaining completion certificate within 45 days. It also directed it to pay the compensation at 9 per cent interest per annum, starting from the proposed date of delivery of possession till March 31, 2025, on the amount deposited by her within 45 days.

Besides the commission also directed the builders to pay to the complainant a compensation of Rs 75,000 for causing them mental agony and harassment and Rs 35,000 as litigation cost.

Chandigarh