Consumer Forum Directs Builder To Hand Over Mohali Flat Or Refund Rs 44.62 Lakh With Interest

The District Consumer Disputes Redressal Commission in Ropar has directed real estate firm WWICS Estates Pvt Ltd to either deliver a complete 3BHK apartment with mandatory statutory clearances or refund Rs 44.62 lakh with 15 percent annual interest to a homebuyer who faced a decade-long wait for possession.

A three-member bench comprising President Kuljit Pal Singh and members Ranvir Kaur and Ramesh Kumar Gupta delivered the order on July 7, also awarding Rs 50,000 to the buyer as compensation for mental agony and legal costs. The commission determined that the developer failed to provide any valid justification for a seven-year delay in obtaining regulatory sanctions, holding that offering possession without necessary certifications violates statutory obligations.

Background And Buyer Claims

The dispute stems from a 2012 booking for a three-bedroom apartment in a Mohali housing project developed by WWICS Estates. Under the terms of the agreement, possession was due by February 2015, or August 2015 including the allowed grace period. By May 2017, the buyer had remitted approximately Rs 44.68 lakh, covering virtually the entire cost of the property.

Despite receiving these payments, the firm failed to provide legal possession on time. Instead, the buyer alleged that the developer demanded additional funds while attempting to hand over an incomplete unit lacking a completion certificate. The buyer subsequently filed a complaint with the consumer body, citing unfair trade practices, service deficiency, and severe mental distress over the potential loss of hard-earned money.

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Developer Stand And Defense

Responding to the allegations, WWICS Estates and its directors requested the dismissal of the case, denying any deficiency in service. The company maintained that the complaint was barred by limitation because possession offers had already been extended in October 2017 and May 2018, which the buyer failed to accept.

According to the developer, the buyer had paid Rs 43.39 lakh excluding service tax, leaving an unpaid balance of around Rs 5.35 lakh. The builder argued that under the contract, the buyer was only entitled to delay compensation calculated at Rs 5 per square foot per month, which could be adjusted against the pending amount. Furthermore, the company highlighted that a partial completion certificate was secured in 2017, the final completion certificate was granted on June 2, 2023, and most of the 400 flats in the project were already occupied. Related proceedings before the Punjab and Haryana High Court were also disposed of following the issuance of the final certificate.

Commission Decision And Directives

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The consumer commission rejected the builder’s arguments, emphasizing that under the Punjab Apartment and Property Regulation Act (PAPRA), obtaining completion and occupancy certificates prior to handing over possession is a mandatory legal duty. The panel noted that the developer had admitted to the delay and failed to present any valid reasons for failing to secure the required approvals within the agreed 36-month timeline.

Consequently, the commission ordered WWICS Estates to hand over the flat equipped with all promised amenities, along with valid occupancy and completion certificates, and execute the sale deed. Alternatively, the firm must refund the buyer Rs 44.62 lakh with 15 percent annual interest from the date of payment, alongside Rs 50,000 in compensation and litigation costs.

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