Delhi Development Authority to Pay Rs. 5 lakh for Delay in Flat Possesion..!

The DDA (Delhi Development Authority) has been directed by the state consumer commission to pay Rs. 5 lakh as compensation to an allottee for delay in handing over possession of a flat to him.

The Delhi State Consumer Commission also directed the DDA to hand over possession of the flat to the allottee within one month as he had already paid the consideration amount in full & the transfer deed had also been executed.

It rejected as vague DDA's reason that ongoing repairs led to the delay in handing over possession of flat to Delhi resident Mr. Dilip Singh Mehta and said the agency had not specified the nature of repairs or the time to complete them.

"The plea from the side of DDA is that the flat was being repaired and the possession will be given. It is not specified what the repairs are & when they will be completed. We have to take this plea as vague and indifferent...."

"An order has to be made for immediate delivery of possession, because the consideration amount has been fully paid & the requisite transfer deed has also been executed. The appellant (Mehta) is therefore entitled to immediate delivery of possession. ...delivery of possession of the flat to be made within one month," bench presided by Justice Mr.Barkat Ali Zaidi said.

The commission's order came on Mr. Mehta's appeal seeking enhancement in the compensation awarded to him by a district forum here on his complaint against the DDA for delay in handing over possession of his flat.

The district forum had directed the DDA to compensate Mr. Mehta for the loss of rent for the period it had failed to deliver possession of the flat.

Mr. Mehta, aggrieved by the forum's order, had moved the commission seeking that compensation be awarded to him separately from the loss of rent suffered by him.

The commission said there is no legal mandate to award damages separately and a lump sum amount can be awarded as compensation.

"Taking into view the facts & circumstances and the loss suggested by the appellant for the rent or / interest, we propose to enhance this amount (awarded by district forum) to Rs. 5 (five) lakh which in our view should be sufficient"

In his complaint before the district forum, Mr. Mehta had said that despite having received in full the consideration amount of Rs. 14.51 lakh & executing the conveyance deed, the DDA had not handed over the possession of the flat alloted to him in Rohini.

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