Punjab RERA Holds Bathinda Development Authority Liable For Delayed Possession Of Residential Plot, Orders Compensation To Complainant

Background Facts

The complainant booked a residential plot in the respondent's project at PUDA Enclave, Mansa, on December 16, 2013. After winning the draw of lots, the respondent issued a letter of intent (LOI) on March 14, 2014, in the complainant's name for a plot measuring 500 square yards at a tentative price of Rs. 35 lakhs.

The complainant paid 25% of the plot price and received an allotment letter from the respondent on July 6, 2016. Subsequently, the complainant paid the remaining 75% of the sale consideration, making a total payment of Rs. 38,48,902 to the respondent.

According to the allotment letter, the respondent was supposed to hand over possession of the plot after completing the development works at the site or within 18 months of the allotment letter, i.e., on or before January 5, 2018, whichever was earlier.

On December 27, 2017, the respondent issued a letter offering possession of an incomplete project without providing basic amenities and without obtaining a completion certificate from the competent authority.

Despite more than three years passing since the stipulated date of possession, the project remained incomplete. Due to this delay complainant lost interest in the project and decided to withdraw. Therefore, Complainant filed complaint before the authority seeking compensation for the respondent's failure to complete the project.

Observation and Direction by Authority

The authority noted that competition certificate received by respondent for project on 22.22.2017 was issued by the Divisional Engineer, PUDA, Bathinda, based on a report from three engineers.

However, only Chief Administrator/Additional Chief Administrator were authorized to issue such certificates. Therefore, authority held that the respondent's offer of possession dated 27.12.2017 on the basis of completion certificate was invalid.

Authority further noted that the respondent was supposed to deliver possession of the plot by 05.01.2018, within 18 months from the allotment letter issuance or after the development work was completed, whichever was earlier. However, the complainant was left without possession from that date until the passing of this order.

Further, during this period, real estate prices in the area of District Mansa increased significantly, as did the Collector Rate for the concerned area, causing the complainant to suffer mental pain, agony, and harassment.

The authority observed that the respondent gained an unfair advantage by not fulfilling their obligation for a considerable period, causing wrongful loss to the complainant. This loss was estimated to be approximately Rs. 75,000. Furthermore, the authority assessed the compensation for legal assistance and other litigation expenses at Rs. 20,000.

Based on these observations, the complaint was partly allowed, and the Authority directed the Respondent to pay a total compensation of Rs. 95,000 to the complainant.

Case – Dr. Pankaj Garg Versus Bathinda Development Authority, through its Chief Administrator & anr

Citation – Complaint No. AdC0017/2023

Order of Date - 08.10.2024