New Chd Residents Win Battle Against Builder, Real Estate News, ET RealEstate

October 1, 2023
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CHANDIGARH: In a significant victory for eleven flat-owners of the Ambika Florence Park housing society in New Chandigarh, the Chandigarh State Consumer Redressal Commission has handed down a landmark decision.

The commission has ruled in favour of the residents, ordering the builder, Ambika Realcon Pvt Ltd, to provide compensation for the delay in possession and instructing the maintenance agency, Shri Vishnu Facilities Management LLP, to refund 30% of the total maintenance charges collected despite unfulfilled brochure promises.

The grievance, filed by eleven Ambika Florence Park residents, alleged that they had not received possession of their flats on the promised date, despite making timely payments. Furthermore, the complainants cited a lack of the promised facilities as outlined in the project brochure.

The commission’s ruling requires the builder to pay the complainants compensation, including interest at 9% per annum for the delay in possession, within 30 days.

If the payment is not made within this timeframe, a penal interest of 12% per annum will apply. The maintenance agency has been ordered to refund 30% of maintenance charges within 30 days, with a 9% per annum interest for any delays.

Furthermore, the commission has stipulated that the maintenance agency must ensure consistent power, power backup, and water supply to the complainants. It will continue to charge maintenance fees at 70% of the total until all basic amenities and facilities are provided by the builder.

The builder has also been directed to pay a lump sum compensation of Rs 1 lakh for mental agony, harassment, and unfair trade practices, in addition to covering litigation costs of Rs. 35,000 for the complainants within 30 days.

The commission has insisted that the builder must fulfill all promised amenities and rectify water leakage defects within three months. Failure to do so will result in further compensation at 6% per annum on the entire deposited amount by the complainants.

  • Published On Oct 1, 2023 at 12:00 PM IST

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