Failure Complete Project - Parsvnath Developers Fined Rs.5 lakh

In a ruling that will bring cheer to worried home buyers, a consumer forum in New Delhi has asked Parsvnath Developers to pay nearly Rs. 5 lakh to a customer for its failure to complete a project in which he had booked a flat. The consumer forum said it amounted to “deficiency in service“.

West Delhi Consumer Disputes Redressal Forum, presided by Mr. Bimla Makin, asked the realty firm to pay Rs. 4,98,768 to Delhi resident Mr. Vinay Vig for failing to complete its housing project in Sonepat in Haryana. It also awarded him a compensation of Rs. 30,000 towards litigation expenses.

The forum noted that the builder was supposed to complete the construction work and hand over possession in 36 months, but even after 42 months no construction had come up on the spot. The ruling noted that even in the reply, the builder did not commit a date, month or year for project completion. So, the complainant has a genuine cause of action for approaching the forum.

Mr. Vinay Vig told the forum that he had booked a flat with the real estate firm in its project called Parsvnath Preston Sonepat in September 2008 and deposited over Rs. 1 lakh as booking amount. He paid the next instalment as per a demand notice the same month. A buyer agreement was also executed.

The builder / developer rejected the complainant’s claim, saying Vig was not a consumer and had made an investment in order to earn profits. It said the project was delayed due to circumstances beyond its control, including the global recession.

-  PTI
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