Firm Cancels Flat Allotment After 80% Payment, Fined, Real Estate News, ET RealEstate

August 27, 2023

CHANDIGARH: In a landmark judgment which might help many home buyers suffering at the hands of real estate companies, the State Consumer dispute Redressal Commission, UT, has imposed a fine of Rs 1 lakh on a real estate firm for cancelling the allotment of a flat without any convincing reason after receiving more than 80% of full payment from a Jaipur-based businessman. The forum also directed the firm to pay Rs 35,000 as litigation cost to the complainant within 30 days.

Sushil Tikku and his wife Sunita Tikku had filed a complaint through their counsel Saksham Arora before the commission, saying that they had purchased a flat measuring 1,370 square feet with super area of 2020 square feet in Florence Park, New Chandigarh, Mohali, from Ambika Realcon Pvt Ltd, on August 20, 2021.

The complainants also availed housing loans to make payment towards the price of the unit in question. As per the said agreement, the flat was to be delivered on or before September 30, 2022.

The complainants paid Rs 72.13 lakh till December 2, 2022 out of total sale consideration of Rs 87.03 lakh to the real estate firm, which admitted receiving the money from complainants. But then, the real estate firm cancelled allotment of the unit in question vide letter dated November 30, 2022.

During trial, the real estate firm said in its reply that the complainants were never regular in making payments towards the price of the said unit, as a result of which a number of reminders were sent to them in the matter. The complainants also failed to make payment of Rs 15.84 lakh along with interest, the firm claimed, adding that after giving them last and final opportunity, their allotment was cancelled by the opposite party.

The commission directed the firm to deliver possession of the unit to the complainants after providing all the basic amenities promised to them within a period of 6 months on receipt of the remaining sale consideration of Rs 14.89 lakh from the complainants, without charging any delayed payment interest.

  • Published On Aug 20, 2023 at 03:00 PM IST

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