Consumer Forum slapped a Penalty on Housing Organisation for delaying Construction of Residential Project
572 apartments were to be constructed for both serving and retired central government employees in Tiruvallur district. Many have invested all their earnings in the project, being promoted on the outskirts of the city. Buyers have not only paid the entire cost as per the original agreement with the promoter, but have also paid about 75% of the escalation in cost. The petitioner alone paid Rs 3.45 lakh towards cost escalation.
Builders who put apartment buyers to hardships by delaying construction have been warned by a consumer disputes redressal forum. The Tiruvallur district consumer disputes redressal forum has slapped a penalty of Rs 50,000 on the Central Government Employees’ Welfare Housing Organisation (CGEWHO) for delaying construction of a residential project at Paruthipattu village on the Poonamallee-Avadi Road. The CGEWHO is a quasi-government organisation functioning under the Union housing and urban poverty alleviation ministry. The complainant, D Thiruvateeswaran, a buyer aged 71 years, is a retired Central telecom service employee who has been hoping against hope to move into a house of his own since 2006.
The forum ordered recently, “For the hardship and mental agony that emanated from the unfair trade practice and deficiency in service on the part of” the CGEWHO “the complainant has to be duly compensated.” The award is aimed at making the CGEWHO accelerate and complete the project without further loss of time, the order said.
The forum also imposed a fine of 12% per annum for any delay in paying the compensation. The Paruthipattu project was proposed in 2005 and construction was expected to commence in January 2007 and be completed in June 2009, as per the contractual obligation between the promoter and buyers. The forum observed that this obligation cannot be jettisoned casually by the promoter.
Had the project been speeded up, such escalation in the cost of construction would not have happened, the forum pointed out. Despite making the buyers wait for 56 months after the project obtained necessary approvals, the promoter did not specify a time-frame for completing the project. The complainant had pointed out before the forum that the promoter was delaying the project with a view to forcing buyers to opt out. The promoter wanted to make more money by selling such apartments to new buyers at a higher cost, Thiruvateeswaran said.
Times of India
Buyers, Central Government Employees' Welfare Housing Organisation, CGEWHO, Chennai, Compensation, Construction of Residential Project, Consumer Forum, Cost escalation, Delaying Construction of Residential Project, Escalation in the cost of construction, Housing Organisation in Chennai, Paruthipattu project, Paruthipattu village, Penalty on Housing Organisation, Poonamallee-Avadi Road, Residential Project, Serving and retired central government employees, Tiruvallur district, Tiruvallur district consumer disputes redressal forum
Please give more such citations on deficiency of service and delay in CGEWHO PROJECTS
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How do I contact such consumer disputes redressal forum? I’ve a similar problem. I made a mistake buying the apartment but wondering what can be done to resolve this. I bought an apartment in May 2008. Though the building was fairly incomplete without proper passage lighting, absence of leveled parking and elevators, the builder allowed me to move in (by paying just 10% of the amount). However, at a later date, I got a loan though the apartment is still not regularised. But, the progress after that has been pathetic. The builder says that he has no money as flat owners have lots of payments due. Due to this, though he had the lift assembled long back, he had kept it off and just recently left it open for use (almost after 3 years). The parking space provided is free and hence he is saying that he may take time to build the leveled parking lot. I’m wondering if I can do anything legally.