Builder to pay compensation with interest for delay

Passing orders on a petition filed by K Ganesan and V Mahalakshmi over failure in handing over the project in Pazhavanthangal village in Alandur Taluk in Kancheepuram district, TNRERA adjudicating officer G Saravanan said that Section 18 of RERA Act gives an option for the allottee (complainant) to withdraw from the project and demand the amount back with interest and compensation if the promoter fails to complete or is unable to give possession of the flat on the date specified in the agreement.

In their petition, the complainants said that they had paid Rs 64.31 lakh of the total price of Rs 1.26 crore and the respondent had unilaterally extended the completion date to November 2019.

“The respondent shall pay a refund of Rs 64.31 lakh, within 30 days, with an interest rate of 10.70 per cent per annum till the payment. The respondent shall also pay nine per cent compensation on the amount of Rs 64.31 lakh and Rs 25,000 towards the cost of the litigation to the complainants,” Saravanan said in his final order.

Saravanan observed that the builder had not come forward to register the agreement entered between the parties even though Section 13 of the RERA Act prohibits the promoter from either accepting any deposit or advance without first entering into an agreement for sale and registering the agreement.

“Admittedly, the respondent has sold the allotted flat booked by the complainants to another customer pending the proceedings before this forum. The respondent is silent regarding the price for which the subject flat was sold to the third party. However, it is not the case of the respondent that the subject flat was sold to the third party for any lesser price amount for which the complainants booked the flat,” the adjudicating officer observed.