Real Estate Builder Told to Pay Rs. 3 Lac For Delaying Handing Over Flat in Chennai...

A real estate company that delayed giving possession of an apartment to its buyer has been directed by the Tamilnadu State Consumer Dispute Redressal Commission to pay Rs. 3 lakh as compensation.

In December 2012, Ms. Vijaya Padmanaban, an employee of Chaitanya Builders and Leasing Pvt Ltd, made an advance payment & booked an apartment in the project being built by her employer . She received the confirmation in the same month, after which she carried out interior furnishing work in the flat.

Two (2) years later, she resigned her job with Chaitanya Builders. The company sent her a note saying the flat was allotted to her "at less than (the actual) cost on an understanding of a long-term productive participation in the growth of the company."

The company also returned her cheques saying that her "attitude to the company's assignments resulted in a loss of  Rs. 2 crore in a project." Ms. Vijaya filed a complaint with the commission seeking a compensation of  Rs. 20 lakh for deficiency in service, harassment, mental agony, and Rs. 15,000 for loss of funds .

Chaitanya, in its reply, said the complaint was time-barred & fell outside the purview of the commission .It said Ms. Vijaya's negligence resulted in huge losses to the company & claimed she was trying to unlawfully take possession of the flat .

Further, Chaitanya filed a civil suit & obtained an injunction order too.

The Tamilnadu State Consumer Dispute Redressal commission's bench said: "It is well settled that all subjects relating to housing construction are within the purview of the Consumer Protection Act.  As there is continuing cause of action in not handing over possession of the flat in complete shape , it can not be barred by time ."

The bench said further evidence regarding the civil suit was not produced & the employment issue was irrelevant to the case.

The Tamilnadu State Consumer Dispute Redressal commission said: "The failure on the part of the company to hand over possession ofthe flat to Vijaya in time amounts to deficiency in service"

It directed Chaitanya to "hand over possession of the flat to Ms. Vijaya & pay an amount of  Rs. 3 lakh for deficiency in service, harassment, loss & sufferings undergone by her, besides Rs. 5,000 as costs."

Ms. Vijaya has also agreed to pay the revised price quoted by the builder. She has been directed to submit the balance amount over & above the initial payments. 

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