ATS Casa Espana project: Punjab RERA awards ₹32 lakh to allottees aggrieved by delayed possession
300 allottees were promised flat possession by 2019, but four years later, construction is still incomplete; the order came on the plea of four allottees who had paid ₹70 lakh each for their flats to ATS Infrabuild Private Limited and Shivalik Greens Maintenance Private Limited.
Coming to the aid of 300 allottees who have been awaiting possession of their flats since 2019, the Punjab Real Estate Regulatory Authority (RERA) has directed the builders of ATS Casa Espana project in Sector 121, Mohali, to pay each allottee around ₹32 lakh as interest for the four-year delay.
The project is a joint venture of ATS Infrabuild Private Limited and Shivalik Greens Maintenance Private Limited. The flats in question are located in Tower Number 1.
RERA has further instructed the builders to pay around ₹62,000 per month as interest to each allottee starting from July 1, 2023, until the date of obtaining the occupancy certificate from the competent authority.
The order came on the plea of four allottees who have been awaiting possession of flats since 2019 despite full final payment of ₹70 lakh per unit. The project was scheduled for completion in 2019 according to the builder-buyer agreement, but construction work is still ongoing and the occupancy certificate has not been obtained, the allottees had alleged.
Taking strong action against the builders, RERA has directed them to pay interest for the delayed possession at the rate of 10.71% per annum from March 1, 2019, to June 30, 2023, shared advocate Mohammed Sartaj Khan, who filed the case with RERA on behalf of the four allottees.
Khan, who is the vice-president of the RERA Bar Association, Punjab, emphasised the significance of the judgment, highlighting that despite the conveyance deed being executed, the possession of the floors to be allotted had yet to be constructed.
RERA also instructed the builders to commence the construction of the said flats at the earliest and deliver possession to all four allottees in accordance with the specified details, quality and conditions as promised, ensuring completion up to the fifth floor.
When contacted, Col Amitav Nath (retd), manager of ATS Casa Espana, attributed the construction delay to the Covid-19 pandemic, adding that the project will be completed soon and possession will be handed over. On RERA’s directive to pay interest for the delayed possession, he dismissed it as “something that happens in every project”.
What RERA said
ATS Infrabuild Pvt Ltd cannot escape from their liability in the contract with the buyers...The builders are directed to start the construction of the said flat at the earliest. There are many complaints regarding this project before RERA, Punjab. In case of further delay in construction and handing over possession of the flats, the penalty provision may be initiated against the builders.
Court of Rakesh Kumar Goyal, member, Real Estate Regulatory Authority, Punjab.
