Omaxe fails to deliver apartment promised in 2019, consumer forum asks it to compensate homebuyer
During the hearings, Omaxe contended that the delay was due to force majeure (unexpected circumstances) conditions, including legal complications and the Covid-19 pandemic.
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The developer also contended that the complainant being an investor did not fall within the definition of consumer, as she and her husband owned multiple properties. (File Photo)The State Consumer Disputes Redressal Commission, Chandigarh, has directed Omaxe Chandigarh Extension Developers Private Limited to compensate its homebuyer for failing to deliver possession of a flat in its ambitious housing project, The Lake, despite a delay of over six years.
The complainant, Reshma Rani, had booked a flat in the project, located in New Chandigarh, and paid a substantial amount of Rs 94.42 lakh through personal funds and a housing loan. As per the buyer’s agreement, the developer was supposed to hand over the flat by February 25, 2019, but failed to do so. After years of waiting and multiple assurances from the developer, Rani filed a complaint with the commission, citing “deficiency in service and unfair trade practices”.
During the hearings, Omaxe contended that the delay was due to force majeure (unexpected circumstances) conditions, including legal complications and the Covid-19 pandemic. The developer also contended that the complainant being an investor did not fall within the definition of consumer, as she and her husband owned multiple properties.
However, the commission, comprising Justice Raj Shekhar Attri (President) and Preetinder Singh (Member), dismissed these claims. It observed that since the due date for possession had passed more than a year before the pandemic, the delay could not be attributed to the pandemic. Additionally, the commission rejected Omaxe’s argument that the complainant was an investor and not a consumer, affirming that she was entitled to relief under consumer protection laws.
In its ruling, the commission directed Omaxe to pay interest at 9 per cent per annum on the amount paid by the complainant from the original due date until the possession is handed over.
The commission ordered the real estate firm to pay to the complainant, compensation of Rs 75,000 for causing her mental agony and harassment, and also cost of litigation of Rs 350,000. It also asked the developer to pay the future pre-EMIs to PNB Housing Finance Limited under subvention scheme till the date of actual physical possession of the unit to the consumer.
The commission also ruled that if Omaxe fails to comply with the order within 30 days, the complainant would be entitled to seek further legal action for the recovery of dues.
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