Construction co. told to pay Rs 60,000 to land owner

The complainant,Ajay Bansal,stated in the case that he wanted to purchase a flat for residential purposes.

Listen to this article

00:00

1x 1.5x 1.8x

The Chandigarh District Consumer Forum has directed a construction company,M/s Emaar MGF Land Limited,to pay a compensation of rupees 60,000 for not initiating construction on a plot of land after receiving due payment for it,which amounts to deficiency in services.

The complainant,Ajay Bansal,stated in the case that he wanted to purchase a flat for residential purposes. He came across a scheme floated by the Emaar group for construction of flats and apartments in their project known as The Views to be built in Mohali by them. The total sale price of the apartment chosen by Ajay was rupees 51,42,750. He was asked to pay seven lakh as the booking amount,which he paid in 2006.

According to Ajay,an agreement was signed and he was allotted a flat after paying the first installment of 7,92,575 rupees. He was required to pay the next installment of 4,97,525 rupees on the start of construction.

Story continues below this ad

However,as the construction was not started,the company had not made any demand for the next installment. The agreement mentioned that Emaar group were bound to hand over the possession of the apartment within a period of 36 months from the date of allotment,which was by the end of February,2011,but the construction work was not started on time.

Ajay complained that he visited the office of the opposite parties to make enquiries about the time period within which the construction shall be completed but was not given a satisfactory reply. He added that the copies of license to start construction,approval by the government authorities/MC with regard to water and electricity connections,NOC from the Pollution Control Board etc. were not shown to him. He asked for rupees two lakh as compensation and rupees 35,000 as cost of litigation.

Emaar MGF Land Limited admitted that since the construction activity in the tower in which the apartment of the complainant was to be situated did not commence,they were justified in not raising the demand of further payment from the complainant. They added that they are willing to relocate the apartment in question to some other location provided Ajay agreed to it.

The consumer forum stated that this is a case of deficiency in services and that the complainant cannot be forced to wait for an indefinite period for delivery of possession,since construction has not yet begun on the plot.

Story continues below this ad

It ordered the construction company to refund the amount collected till date,a total amount of Rupees 14,92,575 to the complainant with interest at nine percent per annum from the respective dates of deposit till payment,along with rupees fifty thousand as compensation for mental agony and harassment and rupees ten thousand as cost of litigation.

Stay updated with the latest - Click here to follow us on Instagram