Chandigarh couple pays Rs 62.7 lakh, nearly 95% of flat cost, but builder repeatedly delays possession for 2 years, he then stops monthly compensation and issues possession letter despite apartment lacking fire safety certificate. Now, consumer commission orders refund with 12% interest and Rs 1.1 lakh compensation and costs
A consumer commission in Chandigarh has ordered a builder to refund Rs 62.7 lakh with 12% interest to a couple who paid nearly 95% of their flat's cost. The ruling follows a two-year delay in possession and the builder's failure to provide a fire safety certificate, despite issuing a possession letter.
A consumer commission in Chandigarh has issued a significant ruling in favor of a homebuyer couple who faced prolonged delays and safety violations from a real estate developer. The couple had paid Rs 62.7 lakh, which represented nearly 95% of the total cost of their apartment, but the builder repeatedly delayed possession for two years. After finally issuing a possession letter, the developer stopped providing monthly compensation for the delay and handed over the apartment without a mandatory fire safety certificate, a critical document for residential buildings.
The commission found the builder's actions to be deficient in service and unfair trade practices. Consequently, the developer has been ordered to refund the entire amount paid by the couple, along with 12% interest. Additionally, the builder must pay Rs 1.1 lakh as compensation for the mental agony and harassment caused by the delays and safety negligence, as well as cover the legal costs of the proceedings. This decision highlights the strict scrutiny being applied to real estate developers who fail to meet statutory safety standards and contractual timelines.
This case is particularly relevant for homebuyers in India, where delays in project handovers and safety compliance issues are common grievances. The ruling serves as a strong deterrent for developers who attempt to bypass safety regulations or withhold compensation during delays. It reinforces the power of consumer forums to enforce accountability in the real estate sector, ensuring that buyers are protected from financial loss and safety hazards. Prospective buyers should be advised to verify all statutory certificates, including fire safety and occupancy permits, before accepting possession of their units.
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