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GMADA, in its defence, argued that the complaint was barred by limitation and claimed that the buyer had purchased the flat for investment purposes. (File Photo)
In a setback for Greater Mohali Area Development Authority (GMADA), the State Consumer Disputes Redressal Commission has held the development authority guilty of “deficiency in service” and “unfair trade practice” for delaying possession of a flat under its Purab Premium Apartments scheme in Sector 88 and offering possession despite incomplete amenities.
In its order, the commission directed GMADA to pay 9 per cent annual interest on the deposited amount for the period between May 21, 2015, and October 7, 2016. It also barred the authority from levying maintenance charges until the project secures a completion certificate. Additionally, the panel awarded Rs 50,000 to the complainant towards compensation for “mental agony” and litigation expenses.
The complaint was filed by Shilpi Srivastava, who had applied for a flat under the scheme in 2012. She was allotted a unit through a draw held on March 19, 2012, and a Letter of Intent (LoI) issued on May 21, 2012, promised possession within 36 months by May 21, 2015. The flat was priced at nearly Rs 55 lakh.
However, construction was not completed within the stipulated period. On June 28, 2016, GMADA issued an offer of possession on an “as is where is” basis.
According to the complaint, when Srivastava visited the site, several basic facilities were still incomplete. She alleged that she accepted possession on October 7, 2016, fearing cancellation of the allotment and forfeiture of the deposited amount.
The commission also noted that the project had not obtained mandatory completion and occupation certificates at the time possession was offered. Despite this, maintenance charges and service tax were allegedly being collected from allottees.
GMADA, in its defence, argued that the complaint was barred by limitation and claimed that the buyer had purchased the flat for investment purposes. It also maintained that all promised facilities were provided as per the brochure.
Rejecting the authority’s arguments, the commission observed that offering possession without securing completion certificates was in violation of norms.
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