Developer to pay up for no delivery of flats: Mohali consumer forum

Bajwa developer was using funds of the complainant for other profitable business which amounts to unfair trade practice.

Developer to pay up for no delivery of flats: Mohali consumer forum
MOHALI: District Consumer Disputes Redressal Forum, Mohali, decided four cases of non-delivery of possession of flats of similar nature and directed Bajwa developer to refund the deposited amount by complainants. In the first case, Diksha Jagota, a resident of Sector 71, Mohali, won the case and Bajwa Developers was directed to refund Rs 3 lakh and compensation of Rs 30,000. All cases decided in one day have the same facts, same sector and same complaint. Diksha booked 1 BHK flat in F21, Sector 74A, 117, Mohali, for value of Rs 12 lakh with Bajwa developer, having area of 450 square feet.

An agreement was entered into between parties on August 26, 2012. Diksha paid first installment of Rs 3 lakh to the developer and she was assured that possession of the flat would be handed over by 2014 end. As per schedule of payment given in the agreement, the final payment was to be made by the complainant in 2014 that is at time of giving the possession. However, Bajwa developer has neither offered possession of the flat nor demanded further installments from the complainant. The complainant visited the site and found that no construction is being done by the developer there and developer have received letter of CLU from the GMADA that they have illegally received the payment from the complainant in 2012 when they were not having any sanctions from the competent authorities for the flat to be handed over to the complainant.

Bajwa developer was using funds of the complainant for other profitable business which amounts to unfair trade practice. On the other hand, Bajwa developer before the court contended that the complainant has committed default in making payment of installments as she had agreed to pay the installments within the stipulated period as per the agreement to sell. Court after hearing arguments directed Bajwa developer to refund deposited amount of Rs 3 lakh, Rs 30,000 for mental harassment and the litigation cost.

The court decided three other cases of similar nature, with same facts, and directed Bajwa developer to refund the deposited amount plus compensation for harassment and litigation costs. Arvinder Singh and Mohinder Singh, residents of Phase 1 Mohali, had applied for 1BHK flat in sector 74 Mohali.

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