The UT State Consumer Forum in Chandigarh came down heavily on realty firm Shipra Estate Ltd, promoters of Capital City Chandigarh, for failing to make any progress in their project and directed it to refund Rs19,58,491, along with 10% interest and Rs60,000 as compensation and costs, to a resident of Sector 7, Chandigarh, Brij Mohan Jain.
Mr Jain had booked an apartment in the project on 7 May 2012, after depositing Rs5 lakh. He had also deposited instalments to make up Rs19,58,491 (25% of the total cost of the apartment).
Pankaj Chandgothia, counsel for the complainant, contended that there was no development whatsoever at the site even after two years. Mr Chandgothia accused the company of unfair trade practice. The company, in its reply, admitted that they could not develop the project due to pendency of writ petitions in the high court relating to acquisition of land for a road leading to the project.
The order said that the company “has claimed delay on the ground of force majeure conditions but, in the instant case, there has been absolutely no progress for around two and a half years. The company, despite knowing that there was delay and uncertainty in starting construction on the project, did not accept the genuine request of the complainant for refund. The complainant has suffered physical harassment and mental agony for which he must be compensated.”