Chandigarh builder told to refund maintenance funds to RWA

The Punjab Consumer Disputes Redressal Commission has directed a noted Chandigarh-based real estate developer to transfer interest-free maintenance security (IFMS) charges amounting to ₹1.91 crore to a Residents Welfare Association (RWA).

The builder, Sushma Buildtech Limited, through its directors Binder Pal Mittal, Bharat Mittal, Pardeep Kumar and Himanshu Kalra, was also told to pay ₹21,000 as compensation on account of mental agony, and harassment as well as litigation expenses. Complainant Sushma Crescent RWA had filed a complaint seeking IFMS amount of ₹1,91,47,200 for 336 flats.

The complainant had alleged that Sushma Buildtech Limited and Sector-38 based Manhattan Infra Services Private Limited developed a real estate project titled “Sushma Crescent” on 48 acres in Ghazipur village, Zirakpur, Mohali.

The builders entered into an apartment buyers agreement with the members of RWA for the sale of the apartments, where it was stipulated that the possession was given to the purchaser in a timebound manner after the agreement and issuing allotment letter.

To secure the payment of the maintenance bills and other charges against the bills raised by the promoter/maintenance agency, a corpus fund was constituted towards which all apartment buyers had to contribute an amount of ₹30 per sq ft as the IFMS. The opposite parties were also required to refund this amount of IFMS to the complainant on the date of expiry of the agreement.

It was brought to the notice of the opposite parties by RWA that regular complaints were being received from residents with regard to electricity fluctuations, backup and maintenance of common areas. The DG set provided by the opposite parties was only 400 KVA, which was unable to take the load of all flats and for under-capacity DG set provided by the opposite parties was chargeable to monthly rent to the tune of ₹85,000, which they charged from the maintenance charges collected from the residents.

However, the builder, instead of purchasing a new genset, started charging the rent of the genset and deducting the same from the maintenance charges. It was alleged that this conduct of the opposite parties is purely deficiency in service.

Partly allowing the complaint, the commission headed by Harinder Pal Singh Mehal stated that the promoter is bound to hand over the corpus so collected, after settlement of accounts/ adjustment of outstanding amounts, and transfer of the said funds to RWA as and when the society is formed. “Now, the RWA has formed and is a registered body and the opposite parties themselves are admitting this fact that they are ready to transfer these funds to the RWA as per the agreement,” stated the commission.