Director of real estate firm held for non-compliance with consumer forum order

Complainant Ram Raj Verma had moved an application for registration for allotment of commercial showroom in an upcoming shopping mall, to be constructed by the Shalimar Estates Private Limited, in Industrial Area, Mohali.

The total price of the showroom was Rs 36 lakh. The draw of lots in respect of the said commercial unit was held on February 2, 2006.

On the acceptance of the application, acceptance-cum-demand letter, dated February 28, 2006, was issued in favour of the complainant and he was allotted a showroom of category “C”, with super area of 400 square feet.

The complainant opted for instalment payment plan. The complainant deposited Rs 23.31 lakh in total up to May 28, 2007, with the developer. The remaining amount was to be paid at the time of delivery of possession.

Though a period of two years expired in February 2008, there was no sign of any construction at the site. Several letters were sent by the complainant regarding the possession of the showroom but there was no response. The complainant then filed a case in the consumer court subsequently.

The commission on November 21, 2014, had asked the real estate firm to refund Rs 23.31 lakh deposited by the complainant and pay a compensation of Rs 1 lakh for mental harassment. The commission also asked the realtor to pay Rs 10,000 as cost of litigation.