Builder fined for deficiency in service

The State Consumer Disputes Redressal Commission upheld an earlier order by the UT Consumer Disputes Redressal Forum against Chandigarh-based AK Builders penalising them Rs 50,000 for deficiency in service.

Written by Express News Service | Chandigarh | Published: August 26, 2012 3:46:33 am

The State Consumer Disputes Redressal Commission upheld an earlier order by the UT Consumer Disputes Redressal Forum against Chandigarh-based AK Builders penalising them Rs 50,000 for deficiency in service.

Swaranjit Singh Khurana,a resident of Roop Singh Nagar entered into an agreement in March 2010 with the builders for constructing his house in SAS Nagar,Mohali. All the parameters of construction along with specific material were detailed in the agreement and Rs 25 lakh — as the total cost of construction was agreed to be paid by Khurana. Later when the builders did additional work,beyond the agreement,an additional amount of Rs 11 lakh was paid by Khurana.

As per the agreement clause,the work was to be completed within eight months,failing which,the builder was to pay Rs 1,000 per day as damages. The firm failed to complete the work within the stipulated period and racked up a bill of Rs 43,83,283 in February 2011,which the complainant (firm) alleged,was excessive. The firm further stated that the delay in construction had caused them a huge financial loss as they were expecting to rent out the premises,which he could not and even possession of the house was not delivered to them.

Amounting it to deficiency in service and unfair trade practice,Khurana filed a complaint before the District Forum claiming the delay penalty,handing over of the possession of the completed house,and compensation for mental agony,harassment and inconvenience,besides cost of litigation

In view of the allegations of the complainant (Khurana)the District Forum appointed a local commissioner,who submitted his report in July 2011,wherein,it was stated that minor works and defects remained which could be finished,but had remained pending due to stoppage of payment by Khurana.

It was stated that the builder was entitled to receive the balance amount as per the final bill,after the removal of defects.

The commission held that the forum was right in awarding compensation to Khurana and the firm should correct the defects,failing which another fined of Rs 50,000 would be slapped against the builder.

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