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This is an archive article published on April 9, 2011

Realtor fined Rs 2.85 lakh for unfair trade practice

A leading Kharar-based realtor was fined Rs 2.85 lakh for what was seen as an unfair trade practice.

Kharar flat: UP native complained to Consumer Disputes Forum of delay in possession even after paying over 90%

A leading Kharar-based realtor was fined Rs 2.85 lakh for what was seen as an unfair trade practice. Mohali District Consumer Disputes Redressal Forum has asked Singla Builders and Promoters Private Limited to pay the compensation besides handing over the possession of the flat within a month. A Forum full bench,headed by its president BS Mehandiratta and comprising its members Dr SS Dhaliwal and HK Ghuman,allowed the complaint filed by Shailendra Kumar,a native of Uttar Pradesh and presently putting up in Phase XI,Mohali.

Of the total awarded compensation of Rs 2.8 lakh,a sum of Rs 1.6 lakh will be adjusted in the installment due from the complainant while the remaining amount of Rs 1.2 lakh will be paid within one month,Forum ordered here today. Besides,the realtor was asked to pay to the complainant litigation costs of Rs 5,000.

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In a complaint under Section 12 of the Consumer Protection Act,1986,the complainant said he was not having any residential house and he was working as Assistant Manager in a private firm.

The builder had offered a 100 square yards house in Noor Villa-2,Kharar,to the complainant for a sum of Rs 16 lakh. As per the construction agreement executed between both the parties on October 31,2008,the possession of the built-up house was to be delivered to the complainant on or before July 30,2009. Accordingly,the complainant paid Rs 14.4 lakh to the builder as per schedule given in the agreement. The balance amount of Rs 1.6 lakh was to be paid at the time of delivery of possession.

After paying Rs 14.4 lakh,the complainant visited the house under construction a number of times and noticed some discrepancies therein,which he regularly reported to the representative of the builder. The house was not constructed even much after stipulated period despite repeated assurances.

“In all 55 persons had entered into agreements for purchase of built-up houses from the realtor. All of them are complaining of defects in their houses. Some of them even shifted their residences but had to vacate the same finding the houses to be unfit for habitation,” submitted Singh,while accusing the builder of cheating all the buyers by delivering defective houses and not even following the National Building Code,2005. He also found the quality of construction raised by the builder as “very poor”.

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Terming the complaint “false” and filed to harass and humiliate them,the builder claimed that the project was completed in all respects well within time. “The complainant has miserably failed to perform his part of the contract and has not paid the installments of the agreed amount,” argued the realtor,while averring that the dispute was of a civil nature and it involves intricate questions of facts and law,which can be gone into only by the Civil Court and cannot be decided in the summary proceedings.

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