Consumer forum directs Chandigarh-based Manohar Infrastructure to pay Rs 11 crore to 26 flat buyers

Consumer forum directs Chandigarh-based Manohar Infrastructure to pay Rs 11 crore to 26 flat buyers

CHANDIGARH: The Chandigarh State Consumer Disputes Redressal Commission has directed real estate company Manohar Infrastructure and Constructions Private Limited to pay nearly Rs 11 crore as refund to 26 consumers along with interest, compensation and litigation costs for failing to give possession of flats on time.

The complaints being of same nature were decided in a single order. All allottees had demanded refund along with compensation. However, to dictate the order, facts were taken from the complaint filed by Bimla Devi and Baljinder Kaur of Sector 11, Panchkula.

They alleged they were allured by misleading advertisements of the project launched by the company under “Palm Garden” at New Chandigarh, Punjab. The complainants opted to purchase a residential plot measuring 250 square yards for Rs 19,500 per square yard. The total price was fixed at Rs 48.75 lakh, excluding external development charges. At the time of booking, the complainants paid Rs14.62 lakh. Later, they paid Rs 9 lakh.

The complainants alleged possession of the plot was not delivered by the promised date. When they visited the site, they noticed that there was no development. When they realized the delivery of the possession of the plot was not in sight, they sent a legal notice on December 22, 2016, to the builder, seeking refund.

The commission, in its order, noted that it is mandated that the project can only be launched when layout/zoning plans are cleared from the competent authorities and exemption is granted from operation of the provisions of Punjab Apartment and Property Regulation Act (PAPRA), by the government. The project, in question, was sold without any permissions and required sanctions and also violated the provisions of PAPRA.

At time of arguments, the company’s counsel said the application to get mega project approved was filed in 2011. “Delay occurred on account of laxity on the part of the bureaucrats and further it was deliberately done because of rivalry between the political party in power and the managing directors of the company, the counsel alleged The commission concluded that the complainants cannot be made to wait for an indefinite period for delivery of possession of plot purchased by them.

The commission also held that RERA and PAPRA will not debar the jurisdiction of this commission in entertaining the complaints filed by a consumer.The court allowed the various complaints with a direction to refund the entire deposited amount with 13% interest and to pay compensation, in varying sums of Rs 75,000 to Rs 1.50 lakh for causing mental agony and physical harassment, to the complainants, as also escalation in prices and to pay litigation cost of Rs 33,000 each.

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