No compensation for delay if sale agreement not entered into: RERA

The complainant, R Venkataraman, had booked a dwelling unit in a project launched by the Indian Railway Welfare Organisation (IRWO) in 2006 at Ambattur. The total sale consideration was fixed at Rs 15.60 lakh, which was later revised to Rs 27.85 lakh.

As per the brochure, IRWO had promised open car parking, children’s play area, shops and a community centre within the premises. However, later the organisation floated another scheme in the space originally meant for open car park and play area.

The complainant claimed compensation for the delay in delivery, failure to provide open car park space and also compensation for mental agony.

However, the respondent said obtaining approvals caused the delay. “Option was given to the complainant for withdrawal from the scheme with refund of the amount with interest. No additional cost for car parking was charged,” the respondent argued.

Hearing the arguments, adjudicating officer G Saravanan observed that no construction agreement was entered into between the parties and no specific date was given for completion of construction and handing over.

“The brochure lays down that if construction of dwelling unit was delayed for any reason whatsoever, no interest or compensation is payable. Therefore, the claim of compensation for the delay is not sustainable,” Saravanan ruled.