Builders must uphold consumer rights and deliver on property agreements; failure incurs refund obligations, irrespective of alleged coercion claims.

1. Heard Mr. Shreenath A. Khemka, Advocate, for the petitioners and Mr. Neeraj Pal Sharma, Advocate, for the respondents.

2. Review Application No. 127 of 2020, filed for review/recall of the order dated 17.06.2020, passed in this revision, was listed on 27.09.2021. As the arguments in review application and in the revision are same, we asked the counsel for the parties to argue the revision on merit, so that the controversy be decided finally.

3. This revision has been filed against the order of State Consumer Disputes Redressal Commission, Punjab at Chandigarh, dated 04.11.2010, passed in Appeal No. 15 of 2009 (arising out of the order of District Consumer Disputes Redressal Forum-1, U.T. Chandigarh, dated 08.12.2008, passed in Consumer Complaint No. 664 of 2008) whereby the complaint was dismissed and the appeal was allowed and the petitioners were directed to refund the amount of Rs. 11 lakhs with interest @ 6% per annum to the respondent, within 30 days. After 30 days, the interest was enhanced @ 12% per annum.

4. Kuldeep Singh (the respondent) filed Consumer Complaint No. 664 of 2008, for directing the petitioners (hereinafter referred to as the builders), (i) to refund an amount of Rs. 11 lakhs along with interest @ 15 % p.a., w.e.f. 04.03.2006 till its realization (ii) to pay Rs. 3 lakhs, as punitive damages, (iii) to pay Rs. 1 lakh as compensation for mental agony and physical harassment, (iv) to pay Rs. 11000/- as the cost of the litigation and (v) any other relief as may be deem fit and proper, in the circumstances of the case.

5. It has been stated in the complaint that the builders were the companies, engaged in business of development and construction of multi-story residential and commercial buildings and selling its unit to the prospective buyers. The builders launched a housing project in the name of “Shivalik Apartments Kharar” in 2005 and made various lucrative advertisements. The complainant, enamoured by the feature of the scheme, booked a flat on 04.03.2006 and paid full and final amount of Rs. 11 lakhs. Total sale price of the flat was Rs. 14 lakhs but Rs. 3 lakhs was given as discount and parking place free of cost, in the scheme of the builders. He was allotted Flat No. 104, on First floor, Shivalik Apartments Kharar, admeasuring covered area of 802 sq. ft. and allotment letter dated 04.03.2006 was given to him, in which the promised period of handing over possession was till 04.04.2007. The complainant perturbed by the slow pace of construction and met the builders in December, 2006. The builders assured that the tempo of construction would pick up very soon and possession would be delivered on promised time. In April, 2007, the complainant again visited the site and found that even first floor construction was not completed. The builders again assured for completing constructions and giving possession, within three months. The complainant again visited the site, in August, 2007, the builders then assured for completing construction and giving possession, till December, 2007. The complainant again visited the site on 24.03.2008 and found that the builders had removed the board of “Shivalik Vihar Sites Private Limited” and in its place painted “Sea Infrastructure”. These change in the name casted a doubt in the mind of the complainant. The complainant again visited the site on 06.05.2008 and found that wall and linter of 4^th floor was laid although the building was to be raised up to sixth floor. The complainant then gave a legal notice dated 12.05.2008, through registered post for refund the money realized from him. Thereafter, the complaint was filed on 11.06.2