Developer Ordered to Refund ₹46.65 Lakh with Interest to Mohali Couple
A recent order by a commission has brought relief to Satish Kumar Chugh and his wife Neelima Chugh, who had invested in a commercial space in Aerocity, Mohali. The couple had initially booked a unit in July 2017, measuring 1,035 sq ft, with the intention of starting a coaching institute for their livelihood.
- The couple paid a total of ₹46,65,781 to the developer by 2020.
- As per the buyer agreement, possession of the unit was to be offered within 48 months, by November 2021.
However, construction failed to progress as promised, prompting the buyers to seek a refund. The developer, instead of refunding the amount, changed the allotted unit in 2021 to a smaller space measuring 800 sq ft.
- The project remained incomplete, with no clear timeline for completion.
- The commission noted that disputes between the developer and local authorities had further stalled progress, making early delivery unlikely.
The opposite parties, including the developer company and its directors, failed to appear before the commission despite being served notice and were proceeded against ex parte.
Commission's Verdict
- The commission held the developer guilty of “deficiency in service” and “unfair trade practice”.
- It observed that the builder had neither delivered possession within the agreed time frame nor refunded the deposited amount.
Order and Penalties
- The commission ordered the developer to refund ₹46.65 lakh with 9% annual interest from the respective dates of deposit within 30 days.
- In case of default, the interest rate would increase to 12% per annum until full payment is made.
- Additionally, the developer has been directed to pay ₹3 lakh as a lump sum compensation towards mental agony, harassment, and litigation expenses.
All opposite parties have been held jointly and severally liable to comply with the order.