In a landmark judgement in favour of consumers, the National Commission has ordered Parsvnath Developers to pay a monthly penalty to allottees for delay in handing over flats in Parsvnath Planet in Lucknow. As per the agreements executed in 2006, the developers were to give possession within 42 months in 2009-10. However, this did not happen. Later, the buyers were told the project would be completed only by 2015! Also, even the partial construction was defective and did not match specifications.
Hence, several separate complaints were filed before the Uttar Pradesh State Commission. In its order dated 25 February 2015, the Commission directed the opposite parties to hand over possession of flats to the complainants in 2015, issue statement of accounts to each complainant and pay 9% interest on amount collected in excess. Aggrieved by the order, the complainants filed separate appeals before the National Commission.
The National Commission partly allowed the appeals and modified the State Commission’s order. It directed the opposite parties to pay Rs. 15,000 per month to people who had bought flats up to 175 sq m in area and Rs 20,000 per month to buyers of flats over 175 sq m. The penalty had to be paid from the beginning of the 55thmonth from the date of execution of the flat buyer agreement till delivery of possession.
Point of law
Flat allottees are entitled to compensation from builders for delayed possession.
Courtesy : CERC