SCDRC has directed the district administration of GB Nagar to issue Recovery Challan (RC) to the developer of KDP Grand Savanna, a highrise in Raj Nagar Extension.
Citing delay in delivery of flats to as many as 18 homebuyers in KDP Grand Savanna, a highrise in Raj Nagar Extension, the State Consumer Disputes Redressal Commission (SCDRC), UP, has directed District Magistrate of Gautam Buddh Nagar to recover the penalty from the developer. The commission has directed the district administration of GB Nagar to issue Recovery Challan (RC) to the developer.
This direction is a follow-up of a judgement the commission gave in March 2018 where the developer, KDP Infrastructure Pvt Ltd, was ordered to give possession to home-buyers within 3 months, else, fine would be levied. The degree of fine would vary according to the delay caused. Delay of more than 3 months from the date of the order would attract a penalty of 9 per cent whereas delay more than 6 months would attract the penalty of 12 per cent. The penalty would be calculated upon the sum deposited by each home-buyers, as mentioned in the court’s order.
“However, the builder did not comply with the court's order and we approached the court again on May 2019 and appealed to the bench for the execution of the court’s order,” told Vipin Verma, counsel of the home-buyers in the case.
Till June 2019, the outstanding amount of penalty levied on the builder has reached approximately 75 lacs.
NCDRC has also levied a fine of over 8 lacs on the developer for mentally harassing the home-buyers.
In 2016, as many as 18 home-buyers had filed a case against the builder in the commission after consistent delay in giving possessions to them. “As per the condition to procure the flat, each home-buyer had deposited 95 per cent of its basic sale price in 2012. The allotment letter was also issued to us but possession of the flat is not delivered till now. The builder kept making false promises to deliver us possession, however, after waiting for four years, we decided to take legal action against it,” told Vinay Verma, one of the home-buyers.
The delay in possession has put the home-buyers in a financial crisis. “We have to pay the rent of the flat where we are living and EMI of the home loan. Had we shifted in our homes, we would have been saved from paying our house rent,” said Verma. Verma lives in rented accommodation with his family in a high-rise building in Raj Nagar Extension.
CitySpidey tried to contact the office of the developer but multiple calls and messages went unanswered