Delay Of 4 Years In Offering Possession, Punjab RERA Orders Builder To Pay Compensation To Homebuyer For Mental Agony

Background Facts

The homebuyers (Complainants) jointly booked a flat in the builder's (Respondent) project Sushma Chandigarh Grande for a total sale consideration of Rs. 62,90,530/-. An apartment buyer's agreement was executed between the parties on 26.06.2012. Out of the total sale consideration, the homebuyers made a payment of Rs. 59,92,759/- to the builder.

According to the buyer's agreement, the builder was supposed to deliver possession of the unit within 48 months from the date of the agreement, i.e., by 26.06.2016. However, the builder failed to complete the project or offer possession of the flat by the stipulated date, causing unreasonable delays without justification.

On 22.06.2020, the builder offered possession of the unit but raised an illegal demand of Rs. 6,24,296/-, without adjusting for the unreasonable delay as per the provisions of the RERA Act. Despite objections raised by the homebuyers through emails, the issue remained unresolved.

Therefore, the homebuyers decided to withdraw from the project and filed a complaint before the authority. Through an order dated 23.02.23, the authority directed the builder to refund the amount paid by the homebuyer with interest.

Furthermore, the homebuyer filed complaint before the adjudicating officer of the authority seeking compensation for the loss of rental income they could have earned during the period of delay, as well as compensation for mental pain, agony, and harassment.

Observation and Direction by Authority

The authority observed that the builder has failed to offer possession of the flat within the promised timeframe (i.e., 26.06.2016), and there has been a prolonged and unreasonable delay of almost 4 years on the builder's part in offering possession of the flat. Therefore, homebuyers are entitled to receive compensation under Section 72 of RERA, 2016.

The authority referred Section 72 of the Real Estate (Regulation and Development) Act, 2016, which is read as follows:

72. Factors To Be Taken Into Account By The Adjudicating Officer

While adjudging the quantum of compensation or interest, as the case may be, under section 71, the adjudicating officer shall have due regard to the following factors, namely: (a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default; (b) the amount of loss caused as a result of the default; (c) the repetitive nature of the default; (d) such other factors which the adjudicating officer considers necessary to the case in furtherance of justice.

The authority observed that the builder utilized the amount paid by the homebuyers for the flat, including during the four-year delay period, during which the homebuyers were deprived of the use of their money. As a result, the homebuyers endured mental agony and harassment.

Therefore, the homebuyers is entitled to receive compensation of Rs. 70,000 from the builder. Additionally, the authority directed the builder to pay Rs. 25,000 to the homebuyers as litigation costs. In total, the authority ordered the builder to pay Rs. 95,000 in compensation to the homebuyers within 90 days.

Case – Niklesh Dubey & anr Versus M/s Sushma Buildtech Limited

Citation - AdC No.1737 of 2020