The District Consumer Disputes Redressal Commission has held Preet Land Promoters and Developers Pvt Ltd guilty of deficiency in service and unfair trade practice for failing to hand over possession of a residential plot in its Preet Land City project in Sector 86 within the promised period.
The order was passed by commission president SK Aggarwal and members Paramjeet Kaur and Lt Col Jasbir Singh Bath on a complaint filed by Bhajan Singh, of Phase 5, Mohali.
According to the complaint, the plot was allotted to Bhajan Singh on March 15, 2011, for a total sale consideration of ₹14 lakh. The complainant paid ₹11 lakh towards the cost of the plot, while the remaining ₹3 lakh was to be paid later towards development charges.
The complainant alleged that under the allotment terms, the developer was required to complete development work and hand over possession within three years. However, despite repeated requests, possession was not delivered.
In its reply, the builder attributed the delay to changes in GMADA’s master plan, claiming the reduction in saleable area caused financial losses and shortage of land.
Rejecting the defence, the commission observed that the developer failed to complete development and hand over possession within the agreed period and held the company liable for deficiency in service under the Consumer Protection Act.
The commission directed the developer to hand over possession of plot number 320, measuring 200 square yards, complete in all respects along with occupation and completion certificates, within two months after receiving the balance sale consideration, if any, from the complainant.
The commission further ruled that if the company fails to hand over the possession within the stipulated period, it will refund the deposited amount of ₹11 lakh along with an interest rate of 9% per annum from the respective dates of deposit. The commission also directed the company to pay ₹1 lakh towards compensation for mental agony, harassment and litigation expenses.