NCDRC holds Sahara Developers guilty of deficient services, directs it to pay compensation, refund

Holding Sahara Developers guilty for "deficiency of service", apex consumer commission NCDRC has directed it to pay Rs 2 lakh as compensation for "mental agony" and "financial loss" suffered by a homebuyer, along with refund of Rs 4.06 lakh, for a delay of more than 10 years in handing over possession.

Along with compensation and refund, the NCDRC also directed Sahara Prime City Limited to pay interest at the rate of 10 per cent on the total amount of Rs 4.06 lakh paid by Alwar-resident Tapasya Palawat.

The National Consumer Disputes Redressal Commission (NCDRC) also asked the developers to pay Rs 25,000 as litigation cost to Palawat.

"The developer has committed an act of deficiency of service and the complainant is entitled to refund of the principal amount along with interest at 12 per cent as awarded by the State Commission from the respective dates of deposits till the date of realisation," NCDRC President R K Agrawal and member M Shreesha said.

The commission said that it was a fit case to award compensation of Rs 2 lakh for the mental agony suffered by Palawat, in addition to the Rs 1 lakh awarded by the state consumer commission.

"We find it a fit case to award an additional compensation of Rs 2,00,000 for the mental agony and the financial loss suffered by the complainant as more than 10 years had lapsed and till date the possession could not be given," the commission observed.

Palawat had booked a flat with Sahara Prime City Limited on February 10, 2006, depositing a total sum of Rs 4.06 lakh.

According to her complaint, she approached the developers time and again for possession but though she was assured that the construction would start there was no progress.

She was allotted a flat in August, 2009, however, she fell ill during the time and after recovery from her illness she was told by the developer that her allotment was cancelled.

Palawat expressed her willingness to pay the due amount and accept possession, which was refused by the developer, the complaint said.

In 2013, the Rajasthan Consumer Disputes Redressal Commission had directed the developer to refund Rs 4.06 lakh to Palawat along with interest of 12 per cent and Rs 1 lakh towards compensation and costs.