IMPORTANT POINT
Delay in allotment of flat – Deficiency in service – Failure to provide completion/occupation certificate by Development Authority.

ORDER

Dr. Sadhna Shanker, Member.—The present appeal has been filed under Section 19 of the Consumer Protection Act, 1986 (for short “the Act”) by Punjab Urban Planning & Development Authority, assailing the Order dated 05.11.2020 passed by the State Consumer Disputes Redressal Commission, Punjab (hereinafter referred to as the ‘State Commission’) in complaint No. 213 of 2020 whereby the complaint was allowed.

2. We have heard the learned counsel for the appellant (hereinafter referred to as the ‘development authority’) and learned counsel for the respondent (hereinafter referred to as the ‘complainant’) and have gone through the material available on record.

3. There is a delay of 60 days in filing the present appeal. In the interest of justice and considering the reasons mentioned in the application for condonation of delay, the delay in filing the appeal is condoned.

4. The facts, in brief, are that on 31.10.2012, the complainant applied for a plot measuring 400 sq. yds. under the “general” category and paid a sum of Rs.2,40,000/- as earnest money. On 15.01.2013, a draw of lots was held and the complainant was declared successful. Subsequently, on 26.02.2013, a Letter of Intent (LoI) was issued and pursuant to the terms of the LoI, the complainant deposited Rs.3,60,000/-, being 15% of the total plot price. In the letter of Intent, it was mentioned that the possession of the plot was to be delivered upon completion of development works at the site or within 18 months from the date of the allotment letter, whichever is earlier. However, till the date of filing the complaint, the development authority had not undertaken any development work at the site. The complainant received an allotment letter on 14.09.2016 allotting plot No. 125, measuring 400 sq. yds. located at a corner with a park facing view. The allotment letter clearly mentions that the amount of Rs.6,00,000/- was adjusted towards initial 25% of the price of the plot and balance of 25% amount i.e. Rs. 90,000/- (Rs. 6,90,000/- minus Rs.6,00,000/- = Rs.90,000/-) was to be paid within 30 days of issue of allotment letter. Additionally, a demand for balance 75% of tentative price of plot (i.e. Rs. 20,70,000/-) was issued by the development authority. It is alleged that the complainant had already paid the entire amount before receiving the allotment letter, including an excess amount beyond what the development authority had demanded. The complainant requested for a refund of the excess payment made and to give 5% rebate on the principal amount, in accordance with Clause-3 (iii) of the allotment letter. The development authority did not respond to the complainant’s representation dated 15.10.2016 and subsequent reminders dated 03.012017 and 06.02.2017. On 07.03.2017, the complainant received a letter from the development authority requesting detailed receipts of payments made for further action. Despite providing all payment details through a letter dated 20.03.2017, the complainant only received a demand draft of Rs.2,48,175/- from the development authority on 26.07.2017. The complainant continued to pursue for interest on the excess amount paid, as the development authority failed to issue the allotment letter for over 3.5 years and retained the surplus funds. In response to the complainant’s representation dated 08.08.2017, the development authority summoned her to appear in person before the Authority on 22.09. 2017. Due to logistical challenges, the complainant could not appear and subsequently sent a reminder on 28.09.2017. The development authority replied on 17.10.2017, citing clause-3 sub clause 15 of the allotment letter to deny interest on the advance amount deposited by the complainant. It is further alleged that despite receiving the full sale price, the development authority failed to develop the project site, causing the complainant to wait indefinitely for possession. On 05.02.2018, the complainant was informed of a re-allotment to plot No. 996-CPF in pl