Now builders have to pay penality for delay possession from date of booking

Q: It is always seen that innocent people who fall victim to the attractive offers of realtors in a bid to own their house.

Ravi S, Chandigarh

5th February 2016

Legal in Chandigarh

chandigarh real estate

cscdrc

penality for developers

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Replies (2)

Yes, the judgement made it clear that since 4 months delay in issuing allotment letter is clearly reason to the opposite parties, in all fairness, 24 months period for possession has to be computed from December 3, 2011, when the complainants signed the allotment agreement and submitted the same to the opposite parties on the same day.

Samarjit, Chandigarh

5th February 2016

Comment

Generally after collecting heavy sums, the builder postpones the execution of the buyers agreement to pocket interest on the amount. Since only the buyers agreement specifies the date of possession, the same is heavily delayed as a consequence of delayed execution of the agreement.

James, Delhi

5th February 2016

@James,
Now, the commission has also ordered that the buyers are liable to pay the balance amount to the builders when legal and complete possession after completion of development and amenities of the property, in question, is offered by the builders.

Balwinder Singh,

5th February 2016

Yes, the Chandigarh State Consumer Disputes Redressal Commission has ruled that the realtors will be liable to pay penal interest at the rate of 12% per annum from the date of booking and not the date of buyers agreement, which is usually executed much after the booking, for delay in possession of the property.

Samarjit, Chandigarh

5th February 2016

Comment

After a long wait Chandigarh property seekers/investors will be happy. Actually, the judgement delivered on the complaint of Chandigarh resident Sundari Mehtab Kaur and her New Delhi-based husband Manoj Garg against a leading real estate company, Omaxe Chandigarh Extension Developers Private Limited.

Balwinder Singh,

5th February 2016