COMPENSATION FOR DELAYING POSSESION OF FLAT

It has been often seen that many housing bodies and builder take the requisite fee for as booking amount in any project but never give the possession of the property in time. Builders and housing bodies delay and this often results in inconvenience for the consumer.For many of the homebuyers, across locations and with almost the builders, the delay has extended to almost six years or more now, with no possession in sight. Though the real estate sector has got its own regulator from May 1, 2017, the date when the Real Estate (Regulation and Development) Act, 2016 (RERA) became effective in the entire country and Each state and UT will have its own Regulatory Authority (RA) which will frame regulations and rules according to the Act there are still incidents where consumers feel cheated.

Consumer Complaint against CGEWHO
Consumer Complaint against CGEWHO

In one such case the State Consumer Redressal Commission of Punjab directed the Central Government Employees Welfare Housing Organization (CGEWHO) to compensate a sector 7, Chandigarh based couple (Mr. Sudhir Mittal and Mrs. Monika Mittal) with 1 lakh Rupees. The verbatim order of the Commission is “deliver possession of the flat, complete in all respect, to the complainants without payment of any outstanding dues by him, within a period of two months”.

According to Mr. Mittal he is employed in the National Informatics Centre, Punjab and Haryana court in the capacity of a technical director. According to him CGEWHO launched a survey in July, 2009 to launch a housing scheme and he applied for allotment of a flat in Mohali, phase 2. He was supposed to receive the possession of the flat in July, 2013 but the delivery was never made.

CGEWHO in their explanation denied any wrong doing on their part. According to them they were working in the capacity of a non-profit making association, as a welfare measure and they were established to promote, control and coordinate the development of housing properties. They denied any involvement stating that they never worked in any capacity of a realtor to create funds.

The commission has stated that the CGEWHO will also bear the cost of litigation and if the housing body is not able to deliver the flat in given time they will return back the 49.6 lakhs given by the Mittals along with 12% interest and a whooping sum of 65,000 Rupees as cost for harassment and litigation.

For case specific advice, one can contact best/top/expert consumer lawyer advocate practicing in District Consumer Forum or State Consumer Disputes Redressal Commission of Punjab Haryana Chandigarh.

This post is written by Abhay Tripathi. For more info, please dial 99888-17966.