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Builder Fined For Selling Plot Without Seeking Permissions

Published on 14 Feb 2019 by Shivi

The District Consumer Disputes Redressal Forum, Chandigarh, has directed Emerging India Real Assets to pay Rs 35,000 as compensation for selling plots before seeking necessary permissions without taking development license from the authority concerned i.e. Greater Mohali Area Development Authority (GMADA). The builder was also directed to refund Rs 5.03 lakh along with 9% interest per annum from the date of deposit till realization to the complainant.

Ajaib Kaur of Sector 25, Panchkula, had stated in her complaint that believing the statements and representations of the said builders about their proposed project on the Banur–Landran highway being approved by Gmada, she had booked a residential plot in the said project.

The total consideration of the plot was Rs 4.80 lakh and the complainant opted for the payment plan-A and in all paid a sum of Rs 5.03 lakh, which was more than the total amount of consideration. Later, the complainant came to know that the plots were being sold without taking development license from GMADA.

READ: How To File A Consumer Complaint Against A Builder

The complainant, accordingly, visited their office and asked for a refund of her money, but nothing was done. In its reply, the builder stated that payments of the plot were to be made by the complainant under the instalment-linked payment plan and she only made paid Rs 4.53 lakh against the net sale price of Rs 27 lakh.

The complainant had, thus, defaulted in almost all payments allegedly made by her knowing that it was an instalment-linked plan and time was of the essence to the contract. It was added that the possession of the plot was to be given within 36 months from the date the complainant had deposited 90% of the net sale price of the plot. However, she only paid 20% of the same.

There were regular delays on part of the complainant in making payments. The forum after hearing both sides held that as per the submissions and record submitted, it was clear that the realtor had not been granted necessary permissions/approvals from the departments concerned, necessary for the establishment of the project in 2014 when the complainant was made to pay Rs 5.03 lakh.

Therefore, the forum concluded that builder defaulted in terms of the provisions of Punjab Apartment and Property Regulation Act, 1995, and are deficient in rendering proper service to the complainant on this score. They were then directed to pay Rs 25,000 as compensation for the unfair trade practice and harassment to Ajaib Kaur along with litigation cost of Rs 10,000.


Tags: Faulty Services  Property Registration 

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