1.      Heard Mr. P.N.Puri, Advocate, for the complainants, Mr. Prabhakar Tiwari, Advocate, for opposite parties-1 to 3 and Ms. Rachana Joshi Issar, Advocate, for opposite parties-4 to 6.

2.      Navneet Samra and Gagan Samra (the complainants) have filed above complaint for directing the opposite parties jointly and severally (i) to refund the amount of Rs.11346250/-, along with interest @12% per annum, (ii) to pay compensation of Rs.21/- lacs for deficiency in service and negligence along with litigation cost.

3.      Parsvnath Developers Limited and others (opposite party-1) (hereinafter referred to as the builder) entered into an Agreement with Chandigarh Housing Board (opposite party-3) on 06.10.2006, for development of residential, commercial and other related infrastructure facilities as an integrated project over 123.79 acre land located in Rajeev Gandhi Chandigarh Technology Park, Chandigarh. Pursuant to which, the builder launched a group housing project in the name of “Parsvnath Pride Asia”, in the year 2007 and invited allotment applications for various categories of flats from general public, opening from 02.09.2007 and closing on 21.09.2007. The complainants applied for Category-C Flat (tentative super area 3000 sq.ft., basic sale price of Rs.20850000/-) and deposited Rs.1042000/- on 19.09.2007. The complainants opted for “Construction Linked Payment Plan”. As per clause-9 of the Application Form, possession of the flat, complete in all respect had to be handed over within 36 months. As per demand, the complainants deposited Rs.1043000/- on 11.10.2007, Rs.3527500/- on 14.11.2007, Rs.2866875/- on 01.01.2008 and Rs.2866875/- on 25.04.2008 (total Rs.11346250). Flat Buyer Agreement, which was a tripartite agreement was executed between the parties on 25.01.2008. Thereafter, no demand was made. The complainants inquired about the various facts relating to the project on 19.05.2009, then a reply dated 19.06.2009 was given. The complainants again inquired about the progress of the project on 01.04.2010, then a reply dated 13.05.2010 was given that the dispute between the builder and Chandigarh Housing Board has been referred to an Arbitrator and due to the dispute, the construction was not started. When the construction was not started then the complainants wrote letters dated 07.07.2009 and 21.09.2009 and requested for refund of his money along with int