Consumer Forum: Real estate firm told to give compensation for failing to allot flat in stipulated time

Pronouncing the orders on Thursday, the commission also directed the firm, Emaar MGF, to reimburse the money deposited by the four complainants along with cost of litigation.

By: Express News Service | Chandigarh | Published:February 25, 2017 5:58 am

Disposing of four complaints, the state consumer disputes redressal commission directed a real estate firm to pay compensation of Rs 8 lakh (Rs 2 lakh to each complainant) as the company had failed to allot the flat within the stipulated time. Pronouncing the orders on Thursday, the commission also directed the firm, Emaar MGF, to reimburse the money deposited by the four complainants along with cost of litigation.

The four complainants are Mulkeet Singh, Malikat Singh and Diljot Kaur — all residents of Mohali — and Ranjan Narula — resident of Gurgaon. Sharing the details of one of the complaints in the order, the commission said Mulkeet Singh had booked a flat in the project of the Emaar MGF, after making the initial payment of Rs 7 lakh on July 18, 2008. The price of the flat was Rs 62,72,558. As per the agreement, the date of allotment of the flat was August 1, 2011 and if the company was unable to allot the flat, then it was supposed to pay a penalty of Rs 5 per square feet per month. Singh also took a loan from HDFC Bank for purchasing the flat. However, when Singh went to the construction site of the project, he realised that no construction had started. He immediately took up the matter with senior officials of the company and was assured that construction would start shortly.

The company, however, failed to deliver physical possession of the unit to the complainant, and did not take the necessary approvals from the government for carrying out construction. He then filed a case in the consumer courts on July 22, 2016.

In its reply, the real estate firm said that the commission has no jurisdiction to entertain the complaint. The company further argued that the possession was “endeavored” to be handed over within three years of execution of the agreement. Thus, there was no definitive agreement stating that possession would definitely be delivered within three years and 90 days for the occupation certificate.

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