.jpg "News Headlines, English News, Today Headlines, Top Stories | Arth Parkash")
The Punjab Real Estate Regulatory Authority (RERA) has ordered Gunjan Land Developers, Zirakpur, to pay ₹1.25 lakh as compensation and litigation costs to two homebuyers from Amritsar. The authority found that the builder failed to deliver possession of a flat and also did not refund the full amount despite entering into a settlement agreement.
The order, given by adjudicating officer RS Rai, directs the builder to pay the amount within 90 days. The complainants, Sunita Sharma and Ajay Kumar, had booked a flat in the company’s GLD Homes project at Kharar, Mohali, but faced multiple problems that eventually led them to approach RERA.
The case began when the two homebuyers filed a complaint against the developer, claiming misrepresentation and cheating. According to their complaint, they booked Flat Number 322 in August 2022 at a sale price of ₹27.5 lakh. Between August 2022 and June 2023, they paid ₹16.44 lakh to the builder. A buyer’s agreement was also signed in August 2022, and the builder assured them that the project was RERA-registered.
The developer also promised immediate possession of the flat along with modern facilities, including a club house and gated township services. However, when the buyers visited the site in October 2023, they were shocked to find no progress on the ground. The site remained undeveloped, and the promises made earlier appeared to be false.
The situation worsened when Ajay Kumar alleged that a company representative misbehaved with him and even physically assaulted him when he questioned the delay. This forced him to file a criminal complaint.
To resolve the matter, both parties entered into a settlement agreement on October 5, 2023. As per the settlement, the builder agreed to refund the money the buyers had already paid. Out of this, ₹5.5 lakh was returned via RTGS, but two cheques of ₹7 lakh each, issued by the builder, were dishonoured. This left a large portion of the buyers’ money unpaid.
Frustrated with the unfulfilled promises, the complainants approached Punjab RERA for justice. Despite repeated notices, the developer failed to appear before the authority. He was eventually proceeded against ex parte (in his absence).
During the hearing, the authority examined several pieces of evidence, including the buyer’s agreement, payment records, and dishonoured cheques. Based on these, adjudicating officer RS Rai concluded that the builder had clearly violated provisions of the RERA Act by not delivering possession and failing to refund the promised amount.
The order stated, “Since the complainants neither received possession of the flat nor the full refund under the settlement deed, they suffered harassment, mental agony, and litigation expenses.” The authority therefore awarded ₹1 lakh as compensation and an additional ₹25,000 as litigation costs.
The builder has been directed to pay the total of ₹1.25 lakh within 90 days. In addition, the complainants have been advised to pursue their claim for the refund of the principal amount, along with any additional damages, through proper legal channels.
Advocate Shahnawaz Khan, counsel for the complainants, explained how the case unfolded. He said that when the buyers first approached RERA, the builder repeatedly avoided attending the hearings. “It was later revealed that he had been lodged in jail in connection with another case,” Khan said. Despite being given several chances, the builder continued to stay away from the proceedings.
Khan also pointed out that although the builder’s lawyer appeared in other matters before the authority, no one represented him in this particular case. This pattern showed that the builder was deliberately avoiding accountability. Given the builder’s absence, RERA had no option but to proceed ex parte and finally ruled in favour of the buyers.
This order highlights the growing importance of RERA in protecting homebuyers’ interests. Many buyers in Punjab and across the country face similar issues, including project delays, false promises, and lack of transparency by developers. RERA provides them a legal platform to seek redressal and ensures that builders are held accountable.
In this case, while the compensation may not cover the buyers’ full financial losses, it sets a precedent that developers cannot mislead customers without consequences. The order also opens the door for the complainants to seek additional refunds and damages through other legal avenues.
For ordinary homebuyers, the ruling offers hope that their grievances will be heard and addressed. It also acts as a warning to developers that misleading advertisements, false claims of RERA registration, and broken promises will attract strict penalties.
ALSO READ: Uttarakhand landslide buries family, heroic mother shields children
ALSO READ: Early signs of PCOS in teenage girls: What parents should watch for
The Punjab RERA order against Gunjan Land Developers shows the authority’s willingness to take strict action in cases of malpractice. By directing the builder to pay compensation for mental harassment and litigation costs, RERA has reinforced its role as a watchdog for consumer rights in the real estate sector.
While the buyers are still entitled to claim the rest of their money and additional damages through separate proceedings, this decision is an important step in their fight for justice. It also serves as a reminder to other developers in Punjab that compliance with RERA norms is not optional but mandatory.
If implemented within the 90-day deadline, the order will provide at least partial relief to the complainants, who have been waiting for over two years for their rightful dues. For the wider community of homebuyers, this case stands as an example of how persistence and legal recourse can bring results, even when builders fail to honour their commitments.
Copyright © © 2022 Copyright. All Rights Reserved with Arth Parkash