RITESH LAKHI Vs. GREATER MOHALI AREA DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) This consumer complaint under Sec. 21(a)(i) of the Consumer Protection Act, 1986 (in short, the 'Act') alleges unfair trade practice and deficiency in service in delay in handing over possession of a plot booked in a project promoted and executed by the opposite party within the promised time and seeking refund of the amount deposited with compensation and other costs.

(2.) The facts, according to the complainant, are that he booked a flat in a project, Purab Premium Apartments, SAS Nagar, Mohali being developed by the opposite party for his residential purpose by depositing 10% of the amount and was successful in the draw of lots on 19/3/2012. On 21/5/2012 a Letter of Intent (LoI) was issued by opposite party allotting a Type 2 flat at a sale consideration of Rs.55,00,000.00 and required initial payment of 30% to be made. Complaint paid Rs.11,00,000.00 by 22/6/2012 since 10% had been paid earlier. Thereafter 65% was to be paid and the final 5% at the time of possession. As per clause 3 of the LoI, possession was to be handed over within 36 months from the date of the LoI, i.e., by May 2015. In case of delay, the allottee had the right to withdraw and the opposite party undertook to refund the entire amount with 8% interest compounded annually. The complainant made the balance payment as per the schedule of the opposite party. However, in May 2015, the project was not complete, and possession was not offered. Opposite party informed the complainant on 6/9/2016 of pending dues and penal interest of Rs.4,07,280.00 which was asked to be paid by 20/9/2016. The complainant paid this amount and replied on 20/9/2016 and informed the opposite party including the forwarding of the receipt. Opposite party however, issued another notice on 27/12/2016 asking for this amount to be remitted to which the complainant replied on 25/1/2017 clarifying that payment had already been made.

(3.) On 9/3/2017, opposite party allotted Apartment No. 1201, Tower 4, Block D, Floor 11, Type 2 with a car park to the complainant and asked for the balance 5% to be paid in order to take possession within 30 days. Rs.2,75,000.00 as balance, Rs.1,10,000.00 as corpus fund and Rs.9612.00 as maintenance fund for 3 months was asked to be deposited. Rs.2,28,000.00 towards service tax was also learnt by the complainant to be outstanding. While the balance 5% and other dues were deposited on 31/10/2018 and 2/11/2018, complainant contested service tax in view of judgments of the High Courts of Delhi as well as Punjab and Haryana vide letter dtd. 12/12/2018. Through a public notice dtd. 15/12/2018 in a local newspaper, opposite party asked allottees to pay the necessary dues failing which allotments were liable for cancellation. The complainant wrote to the opposite party on 17/1/2019 stating that he had paid the dues.