Punjab: Realty firm officials get 6-month jail term

Pronouncing the orders Tuesday, the commission also directed UT Builders and Promoters Limited to pay a fine of Rs 10,000 and issued non-bailable warrants of arrest of L Middha (MD) and Poonam Middha.

Written by Swati Mahajan | Chandigarh | Published:April 19, 2017 6:34 am

COMING DOWN heavily on the managing director (MD) of a Sector 33-based real estate firm for non-compliance with orders, state consumer disputes redressal commission sentenced MD and director of the company to simple imprisonment of six months.

Pronouncing the orders Tuesday, the commission also directed UT Builders and Promoters Limited to pay a fine of Rs 10,000 and issued non-bailable warrants of arrest of L Middha (MD) and Poonam Middha, director of UT Builders, for May 11.

Kewal Aggarwal, who hails from Ludhiana, had bought a flat in a society named ‘Green Estate’ on May 27, 2014. The society was located on Barwala Road in Dera Bassi. At the time of purchasing the said flat he had fixed the price at Rs 31 lakh. When the sale deed was executed, Aggarwal (complainant), had paid an amount of Rs 10 lakh, through cheque, as earnest money. Moreover, the real estate firm had agreed to give the possession of the semi-furnished flat by July 31, 2014 but the company failed to do so. Aggarwal then filed a case in the consumer courts in 2015 which was allowed by the commission.

Passing the orders on January 18, 2016, the commission directed the real-estate firm to refund Rs 10 lakh to the complainant, with an interest of 12 per cent per annum. The commission further asked the company to give a compensation of Rs 1.50 lakh, for causing mental agony. As the orders were not complied, Aggarwal filed an execution and notice was issued to the MD for May 27, 2016.

The commission adjourned the matter several times and an amount of Rs 6 lakh was paid by the company in installments during pendency of the execution application. However, the remaining Rs 4 lakh and the compensation amount was yet to be paid by the builders.

The commission subsequently pronounced the orders sentencing P L Middha, MD and Poonam Middha, director of UT Builders and Promoters, to undergo simple imprisonment for a period of 6 months, each, and to pay a fine of Rs 10,000 each. The company was also directed to pay a fine of Rs 10,000.

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