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Parsvnath Developers to pay Rs 4.9L for deficiency in service

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Press Trust of India New Delhi
A consumer forum here has asked Parsvnath Developers Ltd to pay nearly Rs five lakh to a man for its failure to complete a project in which he had booked a flat and said it amounted to "deficiency in service".

West Delhi Consumer Disputes Redressal Forum, presided by Bimla Makin, asked the real-estate firm to pay Rs 4,98,768 to Delhi resident Vinay Vig for failing to complete its housing project in Sonepat in Haryana.

"...We hold that complainant is entitled to a sum of Rs 4,68,768 which was deposited by him with the opposite party (Parsvnath)... We also award a compensation of Rs 30,000 to the complainant which shall be inclusive of litigation expenses," the forum, also comprising its member Urmila Gupta, said.
 

The forum noted that the builder was supposed to complete the construction work and handover the possession in 36 months after he had booked the flat but even after expiry of 42 months no construction existed at the spot.

"...After more than three years of the booking of the flat and even in the reply, the respondent (firm) did not commit any date, month or year when the construction shall complete...So the complainant had a genuine cause of action for approaching this forum because as promised no construction existed at spot and this amounts to deficiency in service," the forum said.

Vig had told the forum that he booked a flat with the real estate firm in its project Parsvnath Preston Sonepat in September, 2008 and deposited Rs 1,56,255 as booking amount.

He paid the next instalment of Rs 3,12,513 as per a demand notice later in the same month and thereafter a flat buyer agreement was executed between the parties.

However, aggrieved with the builder not completing the construction of the flat within the stipulated period of 36 months, he approached the forum seeking refund of Rs 4,68,768 along with interest.

The firm, however, rejected the complainant's claim saying Vig was not a consumer and he had made investment in order to earn profits.

Saying that the project was delayed due to circumstances beyond its control, the builder contended global recession hit economies all over the world including Indian economy, but more particularly hit the real estate sector due to which pace of construction got slowed down.

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First Published: Aug 07 2014 | 6:56 PM IST

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