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Builder to pay Rs 3.26 lakh for delaying flat possession to owner

The builder has to hand over the fully constructed house by October second week,” said the forum presided by president K Lakshmikantham and member D Babu.

Published: 25th September 2018 03:30 AM  |   Last Updated: 25th September 2018 03:30 AM   |  A+A-

By Express News Service

CHENNAI: For delaying the handing over of the possession of a newly constructed flat in Urappakkam for close to three years, a city-based property developer has been ordered by the Consumer Disputes Redressal Forum of North Chennai District to pay Rs 3.26 lakh as compensation to the complainant, a resident of Villivakkam.

A clause in the agreement clearly states that the builder should hand over the flat to the resident on or before February 2014. But the builder failed to do so until the forum pronounced the order on August 2018.

The matter dates back to 2012 when A Premalatha paid a sum of Rs 4 lakh as advance to Antony Property Pvt Ltd for building a house in 1,420 sqft in Karanaipuduchery village in Urappakkam. The builder agreed to hand over a fully constructed house within 18 months and also furnish the house at a cost Rs 54,000. The complainant had also paid 90 per cent of the full amount of Rs 20 lakh in five instalments to the builder.

“I had informed the builder that the remaining amount of around Rs 2 lakh will be paid once I occupy the house. Also, there were several defects in construction as they had used poor quality materials for furnishing the house. The delay forced me to keep postponing the house-warming,” said Premalatha in her complaint.

The builder in their defence said that the resident had delayed in paying all the five instalments and so she is required to pay them an interest of 24 per cent along with the remaining amount.

But the resident reasoned that the builder had not provided an exact date to pay each instalment and so, she was not able to make the payment on time. The forum, which accepted the complainant’s defence, ordered the builder to pay Rs 2.2 lakh as rent for the delayed period of 35 months and Rs 1 lakh for deficiency in service.

“The possession is not handed over till date even after the final settlement. The complainant also had to pay a monthly EMI without occupying the flat. The builder has to hand over the fully constructed house by October second week,” said the forum presided by president K Lakshmikantham and member D Babu.

Builders in their defence
The first installment of `10 lakh was remitted only after a delay of nearly five months. As per the agreement the complainant is liable to pay Rs 1 lakh for this. Also, we couldn’t hand over the house because electricity board was delaying the connection

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