To deter the erring defaulters, the UT Consumer Forum issued an order to Shalimar Estates to pay Rs 39,000 every month till the possession of the property is not given to the buyer. The heavy compensation amount has been awarded keeping in view the losses incurred by the buyer every month because of the delay in construction.

“Pay compensation of Rs 39,000 every month for the delay till the showroom is not ready,” said a recent order of the UT Consumer Forum.

Earlier, all the compensations directed to builders included lump sum amounts to be paid as penalties. Jaspreet Kaur, a Mohali resident, moved the consumer forum alleging that after applying for a shop with Shalimar Estates, she was promised that the showroom will be allotted to her within two years. Even after depositing Rs 31.2 lakh towards the showroom, the possession of the shop has not been given to her.

In its reply, Shalimar Estates argued that they are liable to pay compensation to the allottee at the rate of Rs 10 per sq ft per month, if they fail to deliver the symbolic possession of the showroom in the committed time. They said their liability to pay compensation would not be more than Rs 5,000 per month.

The forum, headed by President Jagroop Singh Mahal, ruled that if the rate of interest is counted at 15 per cent per annum, the builders are liable to pay Rs 39,000 per month by way of compensation. It held the builders responsible for unfair trade practices as they took money but failed to complete it in time.

On November 18 this year, the Consumer Forum directed Amariss Builders and Consultants to pay 2 lakh for their failure to allot flats to a city resident after they took Rs 8 lakh from him. “Owing to a slowdown in the economy, builders are not able to complete constructions on time. On an average, we receive two to three complaints every day. The number of cases being decided against builders are also more these days as one case gets decided every week. The consumers are coming with varied types of complaints,” said K C Gupta, president, UT State Consumer Disputes Redressal Commission.