The District Consumer Disputes Redressal Commission, Mohali, has ruled in favour of a homebuyer in a case involving construction delays, alleged quality defects, inadequate parking space and missing statutory clearances. The commission directed the real estate developer to pay 9% annual interest on the amount deposited by the buyer, rectify construction defects, refund illegally collected maintenance charges and restore the original parking space.
The developer has also been ordered to pay ₹75,000 as compensation for mental agony, harassment and litigation expenses. It must complete the directed compliance measures within three months of receiving the order.
Delayed Possession and Construction Defects
The homebuyer had purchased a 1,050 sq ft two-bedroom apartment in Sector 66-A, Mohali, through a re-allotment letter dated June 30, 2021. According to the complaint, the project was originally scheduled for completion within 36 months, with the promised possession date stated as July 30, 2018.
However, the developer offered possession only in December 2022. Facing financial pressure, the buyer accepted possession on March 10, 2023, after paying the outstanding balance of ₹2,40,153.
After moving into the apartment, the buyer reportedly found discrepancies between the facilities promised in the project brochure and those provided. The complaint also raised concerns about construction dust that aggravated the buyer’s bronchitis and the division of a standard car parking space into smaller bays.
Another major issue was the absence of occupation and completion certificates from the Greater Mohali Area Development Authority (GMADA). These certificates are important statutory documents associated with the lawful completion and occupation of a building.
Commission Questions Validity of Possession Offer
The commission observed that handing over apartment keys without the required occupation and completion certificates does not constitute a valid offer of possession. Referring to precedents set by the National Consumer Disputes Redressal Commission (NCDRC), it also held that builders cannot levy maintenance charges before obtaining the completion certificates.
The commission further noted that commitments made in promotional brochures form part of the service agreement with homebuyers. Developers are therefore expected to provide the facilities and amenities represented during the sale of a property.
On the parking dispute, the commission reviewed photographic evidence showing the restricted space. It observed that the builder had failed to produce a sanctioned parking plan to justify the division of the original parking bay.
The findings underline the importance of statutory approvals, adherence to approved plans and the delivery of facilities promised to buyers during the property purchase process.
Builder Directed to Complete Compliance Within Three Months
The commission partly allowed the complaint and issued several directions to the developer and its management. The builder must provide the basic amenities promised in the project brochure, obtain the final occupation and completion certificates from GMADA, and restore the homebuyer’s original, uncompromised parking space.
The commission also ordered the developer to pay 9% annual interest on the total deposited amount of ₹42,13,678. The interest is to be calculated from the originally promised possession date until the final completion certificate is obtained. The developer must also refund the maintenance charges found to have been collected illegally.
In addition, the ₹75,000 compensation covers mental agony, harassment and litigation expenses incurred by the buyer.
