Couple wins Rs 1.47 crore refund after ‘hard-earned money’ gets stuck in stalled Mohali project

“Hard-earned money was paid by the complainants, with the hope of having possession of the said unit. All the facts established that from the very inception, there was intent to induce the complainants to enter into the transaction, referred to above and also intent to deceive them, which act amounts to grave deficiency in providing service and adoption of unfair trade practice on the part of opposite parties, which has definitely caused a lot of mental agony, harassment and financial loss to the complainants,” the June 8 order read. 

‘Mental, financial harassment’

• The consumer body held that the couple was deprived of the value of their investment and were faced with prolonged mental and financial harassment. 
• Therefore, it was held that the couple is entitled to a refund of the amount deposited along with appropriate interest and compensation. 
• The consumer body held that the purchasers, including the complainants, have a legitimate, enforceable and equitable claim over such funds. 
• It was added that the Greater Mohali Area Development Authority (GMADA) was under a legal obligation to act in a fair, transparent and equitable manner to safeguard and protect their interests.
• The consumer body held that the couple is also entitled to compensation on account of mental agony and physical harassment suffered by them at the hands of the builders and costs of litigation. 
• The commission pointed out that possession had still not been offered and, therefore, the builder could not levy any commitment charges while refunding the deposited amount.
• The consumer body directed the said company to refund an amount of Rs 1.46 crore without deducting any TDS to the complainants within 30 days. 
• The commission body further directed the company to pay compensation for causing mental agony and harassment to the tune of Rs 75,000 and also Rs 35,000 as cost of litigation, to the complainants, within 30 days. 

Dream of earning livelihood shattered

It was placed on record that the couple booked a commercial shop in 2019 in the WTC Chandigarh Aerocity, Mohali project for a total consideration of Rs 1. 67 crore, out of which they paid Rs 1.46 crore. It was stated that the couple purchased the said unit for the purpose of earning their livelihood by means of self-employment. 

Subsequently, a developer-buyer agreement was executed in January 2019, which pointed out that the possession of the said unit would be offered in December 2022. 

They claimed that whenever they sought updates, the company reassured them that the project was progressing as planned and would be completed within the promised timeline.

The complainants later discovered in April 2023 that the Greater Mohali Area Development Authority (GMADA) had cancelled the project site due to non-payment of dues by the developer and that the developer’s challenge to the action had also failed before the high court.

According to the complainants, despite repeated requests, the builder neither offered possession of the unit nor refunded the amount paid by them.

They contended that the builder’s conduct in collecting substantial amounts from buyers despite the project’s uncertain status, misrepresenting the progress of construction, failing to comply with statutory obligations and delaying the project indefinitely amounted to deficiency in service and unfair trade practice.