‘No home’ 13 years after booking flat, Punjab man wins Rs 44 lakh refund

The order noted that the opposite parties failed to give any reasonable explanation for the delay of seven years in getting approval from the authorities. It added that even otherwise, as per the agreement, the possession was due in February 2015, but till date the formal possession has not been offered.

Holding that the complainant paid a substantial amount to the builder with the hope of getting the possession of the flat in a reasonable time, the order stated that the latter is under an obligation to deliver the possession of the flat within a reasonable time and is bound to compensate for the loss/injury suffered by the complainant for failure to deliver  possession.

Rs 44 lakh stuck for years

The complainant booked the 3BHK flat in a housing project developed by WWICS Estates Pvt Ltd in Mohali for about Rs 44.62 lakh in 2012. Believing the builder’s promise of timely completion, he paid nearly the entire sale amount of Rs 44.68 lakh by May 2017.

However, despite the agreement requiring possession by August 2015 (including the grace period), the builder failed to hand over a legally complete flat. Instead, it allegedly attempted to offer possession of an unfinished apartment without the mandatory completion certificate while continuing to raise further payment demands. Aggrieved by the prolonged delay, the buyer approached the consumer commission alleging deficiency in service and unfair trade practices, seeking possession with compensation or a refund with interest.

The complainant alleged that the builder caused him tremendous mental agony and his hard-earned money appeared to have been lost.

Builder blames buyer for delay

The opposite parties, WWICS Estates Pvt Ltd and its directors, denied any deficiency in service and sought dismissal of the complaint. They argued that the complaint was barred by limitation because possession had already been offered in October 2017 and again in May 2018, but the complainant failed to take possession.

They contended that the buyer had paid Rs 43.39 lakh (excluding service tax) and still owed about Rs 5.35 lakh. According to the builder, under the buyer agreement, the complainant was entitled only to compensation of Rs 5 per sq ft per month for delay, which they were willing to pay or adjust against the outstanding amount.

They further submitted that a partial completion certificate had been obtained in 2017, most of the project’s 400 flats were already occupied, and the completion certificate was issued on June 2, 2023, after which related proceedings before the Punjab and Haryana High Court were disposed of. The builder maintained that the project was complete and the complainant was unjustifiably refusing possession.

Missing certificate proves lapse: Order

The order noted that the builder failed to produce completion/occupancy certificates when they had to deliver possession of the flat in 2015. It said the company failed to deliver possession of the flat to the complainant within the stipulated period of 36 months from the date of agreement without any sufficient cause or explanation.

“No such circumstances/reasons have been explained/proved, delaying delivery of possession beyond the stipulated period fixed thereof. Rather, the opposite parties admitted their deficiency regarding delay in delivery of possession, for which they also agree to pay certain penalty amounts in account of the complainant as per the terms of the agreement,” it said.

Pointing out that under the Punjab Apartment and Property Regulation Act (PAPRA), it was the builder’s responsibility to obtain the completion/occupancy certificate before handing over possession, the commission held that the delay amounted to deficiency in service and non-compliance with the Act, as the complainant had paid a substantial amount expecting possession within a reasonable time.

The commission ordered the builder to hand over the flat complete with all promised amenities, along with valid completion and occupancy certificates, and execute the sale deed. Alternatively, it ordered a refund of Rs 44.62 lakh with 15 per cent annual interest, besides Rs 50,000 as compensation and litigation costs.

Takeaway

This judgment reinforces that builders cannot offer legal possession without first obtaining mandatory completion and occupancy certificates. It affirms that delays caused by a developer’s failure to secure statutory approvals constitute a deficiency in service, and homebuyers are entitled to possession with compensation or a refund with interest for prolonged, unjustified delays.

Consumers facing similar grievances may contact the consumer helpline in their respective states (Punjab: 1800-425-1082) or dial the National Consumer Helpline at 1915 for assistance.