Consumer Case on Parsvnath City Center for not Completed Project on Given Specific Date
The complainants had applied for office space in the Parsvnath City Center Bhiwadi project, paying Rs. 22,38,807, with the project promised to be completed within 30 months.
However, the developer abandoned the project, and despite multiple communications and a legal notice seeking a refund, the complainants received no satisfactory response. After a delay of nine years, they filed a complaint before the consumer forum, seeking compensation. The developer contested the complaint, citing issues of maintainability, limitation, and claiming the delay was due to a global economic slowdown affecting the real estate sector.
The bench addressed two key issues: First, it ruled that the complainants, who had booked commercial space for earning a livelihood and were not involved in selling properties, qualify as ‘consumers’ under the Consumer Protection Act, 1986. Second, it found a ‘deficiency in service’ by the developer, as the possession, which was supposed to be delivered within 30 months, had not been provided even after nine years.
Citing the judgment in Arifur Rahman Khan & Others vs. DLF Southern Homes Private Limited, the bench held the developer liable. The complainants were awarded a refund of Rs. 22,38,807 with 6% interest, Rs. 1,00,000 for mental agony and harassment, and Rs. 50,000 for litigation costs.
Source: – Live Law
By: – Rajat Ranjan
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