Chandigarh: Order not complied with, builder, CHB chief summoned by consumer panel

For failing to comply with its 2013 order, the State Consumer Disputes Redressal Commission has issued notices to the directors and managing director of Parsvnath Developers Ltd and the chairman of the Chandigarh Housing Board (CHB).

The respondents have been told to personally appear before the commission on August 11, failing which “coercive action” will be taken against them.

The directions came in connection with the complaint of a Panchkula resident, who was not provided possession of a flat by Parsvnath Developers Ltd that was developing a project Prideasia at IT Park, on land allotted by CHB.

In June 2013, disposing of the complaint by Ajay Gauba, the commission had directed the developer to refund over ₹43 lakh deposited by him, along with interest, within 30 days. The commission had also directed the builder to pay compensation for not offering possession of built-up flat within 36 months. The plea against CHB, however, was dismissed.

Parsvnath challenged the order before the National Consumer Disputes Redressal Commission. But did not get any relief.

The builder went further to the Supreme Court in 2021 with a civil appeal against the National Commission’s February 2020 order.

In April 2023, the Supreme Court dismissed the appeal, by observing: “… the appeals preferred by Parsvnath Developers Limited are hereby partly allowed. The developer is liable to pay compensation to the respective allottees/buyers/original complainants to the extent of 70% and the liability to pay balance 30% of the compensation in terms of clause 9 (c) of the Flat Buyer Agreement will be upon Chandigarh Housing Board.”

With Gauba yet to receive compensation, the matter came back to the State Commission, which via its order dated July 28, said: “The Supreme Court has already disposed of the civil appeal and its dictum is binding upon the Chandigarh Housing Board and others.”

It added that adequate opportunities had already been given to CHB and Parsavnath Developers Ltd to deposit the decretal amount of their respective shares, but they had failed to do so.

Summoning the directors and managing director of Parsvnath Developers Ltd and also chairman of CHB on August 11, the commission held that a prima facie case was made out against the judgment debtors under Section 27 of Consumer Protection Act, 1986. If proven, the charge entails up to three years in jail or up to ₹10,000 fine or both.