Chandigarh couple pays Rs 62.7 lakh, nearly 95% of flat cost, but builder repeatedly delays possession for 2 years, he then stops monthly compensation and issues possession letter despite apartment lacking fire safety certificate. Now, consumer commission orders refund with 12% interest and Rs 1.1 lakh compensation and costs

CHANDIGARH: A real estate firm and its two directors have been directed to refund Rs 62.7 lakh with 12% annual interest to a Zirakpur homebuyer couple after repeatedly delaying possession of their flat, stopping monthly compensation and issuing a possession letter despite the apartment lacking a fire safety certificate.The State Consumer Disputes Redressal Commission, UT Chandigarh, also ordered the builder to pay Rs 75,000 as compensation for mental agony and Rs 35,000 towards litigation costs within 30 days, holding the firm guilty of deficiency in service and unfair trade practices.Saurabh Verma and his wife, Puja Rani, booked a 1,590-square-foot apartment for Rs 66.5 lakh in October 2022, with possession originally scheduled for October 31, 2023. They paid Rs 62.7 lakh, including Rs 40.1 lakh through a home loan, but the developer failed to deliver the flat within the agreed period.The builder subsequently extended the possession deadline three times, in September 2023, August 2024 and August 2025. The revised deadlines were November 2024, July 2025 and December 31, 2025.The firm initially paid the couple Rs 30,000 per month as compensation for the delay, but stopped making the payments after a year. The commission directed that the compensation paid between November 2023 and November 2024 be adjusted against the final refund.Possession letter issued despite missing fire safety certificateThe couple alleged that the builder demanded additional money for finishing work despite the slow pace of construction. They claimed the firm threatened to cancel the contract and charge 24% interest if they failed to make the payments.On September 27, 2025, the developer issued a possession letter, which the buyers refused to accept, citing incomplete construction and the absence of mandatory statutory approvals.An RTI response dated January 2, 2026, confirmed that the apartment lacked a fire safety certificate, according to the complaint.The commission observed that issuing a possession letter without the required statutory clearances did not establish that a residential unit was fit for occupation. It also noted that the builder's defence was struck off on April 16, 2026, after the firm failed to file its written reply within the prescribed 45-day period.Buyers cannot be made to wait indefinitelyRelying on Supreme Court precedents, the commission held that homebuyers could not be compelled to wait indefinitely for possession or accept an incomplete apartment."The obligation of a builder is not merely to construct a structure or issue a letter describing possession as offered; it is to deliver the contracted residential unit within the stipulated period, in a habitable condition and in conformity with the applicable statutory requirements," the commission observed.It held that repeated delays, discontinuation of compensation and demands for additional funds amounted to material deficiency in service under the Consumer Protection Act, 2019.The commission also highlighted that the couple had paid nearly 95% of the flat's total cost, leaving a substantial portion of their financial resources tied up in a property whose lawful and habitable possession had not been established.The builder and its two directors have been directed to refund Rs 62.7 lakh with 12% annual interest calculated from the respective dates of deposit. They must also pay Rs 1.1 lakh in compensation and litigation costs within 30 days.You Can Also Check: Gold Rate in Chandigarh | Silver Rate in Chandigarh | Bank Holidays in Chandigarh | Public Holidays in Chandigarh | Chandigarh AQI | Weather in Chandigarh | Petrol Price in Chandigarh | Diesel Price in Chandigarh | CNG Price in Chandigarh | LPG Price in ChandigarhStay updated with the latest Chandigarh news. Download the TOI App.