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Homebuyer awarded Rs 40L refund over delay

Parsvnath Developers passed the blame to authorities and recession

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Stating that his dreams of owning a house were shattered, a consumer court in Delhi has awarded over Rs 40 lakh as refund to a man for a flat that he had bought from the Parsvnath Developers. The possession of the flat concerned was not handed over within the stipulated time.

"Hard-earned money of homebuyers is being used by builders to expand their business by way of investing in other projects. The dream of the complainant to have his own house is shattered," the court said.

According to Narender Kumar Dhameja's complaint, he bought a flat at the Parsvnath Sterling, Ghaziabad. The flat, which cost Rs 3,928,500, was to be completed by March, 2008. By the time Dhameja filed the complaint, in July, 2012, he had deposited Rs 3,653,220.

The complainant alleged that instead of using the money for the project concerned, the builder used it to expand his business. He further said that the builders told him that due to the exponential rise in the flat price, they wanted to cancel the allotment and sell it to someone else.

Following this, Dhameja filed a complaint, demanding a refund of the entire amount along with an interest at the rate of 24 per cent per annum. He also demanded compensation to the tune of Rs 5 lakh and litigation charges worth Rs 75,000.

In reply to the legal notice sent on May 26, 2012, the builders stated that active measures were being taken by mobilising resources and rescheduling work, adding that the delay was due to restraints from courts or authorities, non-availability of building material, and disputes with contractors.

In another reply, however, they stated that a global recession had hit the Indian economy in 2009, due to which they suffered financial constraints.

The court held that the builders were taking different pleas at different places and the defence raised by them was not worth the credit, following which it directed that the complainant be refunded Rs 3,653,220 deposited by him at a rate of 18 per cent per annum, along with Rs 50,000 for harassment, inconvenience, frustration, and mental agony.

The court also directed to pay Rs 50,000 as litigation charges within 90 days of the date of the order.

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