SCDRC Orders Omaxe Chandigarh Extension Developers to Compensate Buyer For Timely Delivery Assurance

                The State Consumer Disputes Redressal Commission has directed the Omaxe Chandigarh Extension Developers Private Limited to pay a compensation of Rs 1.10 lakh to Naresh 
Garg, a Sector 24-D resident, for failing to deliver the possession of an apartment in the firm’s ‘The Lake’ project at Mullanpur in SAS district. The State Consumer Disputes Redressal 
Commission found Omaxe guilty of providing deficient service and adopting unfair trade practices.
The company has been directed to compensate Garg for the delays and associated issues.
Garg, in his complaint to the Commission, stated that he had purchased a 1,285 square feet unit in the project for Rs 56,63,404 as per an agreement dated Dec 16, 2015. The 
possession of the property was expected by Dec 15, 2019, he said.
When the possession was not delivered in time by the developer, Garg accepted an offer to relocate to a bigger unit measuring 1,850 square feet under a new agreement dated Jan 
29, 2020. However, the possession for this unit was also delayed beyond the committed date of July 31, 2021.
In an email dated Jan 27, 2023, the company informed Garg that the construction was still ongoing and possession would be delivered by March 2024.
Garg then approached the State Consumer Disputes Redressal Commission and sought possession of the new unit along with compensation for the delay, mental agony, and 
harassment. He also sought a refund on the GST paid.
In its defence, Omaxe argued that the delay was due to force majeure conditions, including the Covid-19 pandemic. The firm stated that the RERA, Punjab, had extended the project’s 
deadline multiple times due to these conditions.

After listening to both sides, the Commission noted that the possession had not been delivered even by the extended deadlines, indicating a significant delay.
The Commission ordered Omaxe to hand over the physical possession of the unit, complete in all respects, within two months from the receipt of the order, after obtaining the 
necessary certificates from the authorities and receiving the remaining sale consideration from Garg.
The firm was also directed to execute the sale deed within one month of delivering the possession.

The commission also ordered Omaxe to pay compensation at 9% interest per annum on the received sale consideration from april 30, 2022, until july 31, 2024, within 30 days of the 
order. If delayed, the compensation will carry 12% interest per annum until paid, and omaxe must continue to pay compensation at 9% interest per annum from august 1, 2024, 
onwards, every month until compliance.
The developer also directed to pay an additional Rs 75,000 to Garg for mrntal agony, harassment, deficiency in providing service and adoption of unfair trade practice. It was also 
instructed to pay Rs 35,000 as litigation costs within 30 days, failing which rhese amounts will also carry 9% interest per annum until realization.



Source : The Economic Time