A Zirakpur-based realtor has been directed to hand over a flat in Peer Muchalla or refund ₹41 lakh with 9% annual interest after the Mohali consumer commission found that the developer failed to complete the project and provide possession within the agreed period.The commission held that the developer failed to justify the delay in completing the project and providing possession. (HT Photo for representation)The commission directed Royal Empire, its directors Jiwan Garg and Prince Garg, to pay ₹3 lakh to two complainants towards compensation for mental agony, harassment and litigation expenses. The order was passed by a three-member bench comprising president SK Aggarwal and members Paramjeet Kaur and Lt Col Jasbir Singh Bath.The complainants, Amita Sood, wife of Puneet Sood, a resident of Panchkula, and Anupam Gupta, wife of Sanjiv Gupta, a Chandigarh resident, had booked flats in the developer’s earlier project, Royal Minar. They paid ₹41.6 lakh towards the booking.The developer later shifted their booking to Royal Empire, Peer Muchalla, and allotted Flat No. 803 in Block N. An allotment letter and apartment buyer’s agreement were executed on July 17, 2013. Under the agreement, the developer had to hand over possession within 18 to 21 months.However, when the complainants visited the project in December 2016, they found only the basic structure of the building and construction had stopped, according to the commission’s order.The complainants approached the commission alleging deficiency in service and unfair trade practice. They sought possession with promised amenities and approvals or a refund with interest, besides compensation.The developer contested the complaint, claiming that the complainants had initially booked three flats in Royal Minar and that ₹41.6 lakh was adjusted towards the new flat. It claimed that the new flat cost ₹55.6 lakh, leaving ₹14 lakh payable by the complainants.The developer also claimed that it had offered an alternative flat in Block Q and issued demand notices, but the complainants failed to pay the balance amount. It said the booking was subsequently cancelled and the ₹41.6 lakh forfeited.The commission, however, found that the developer did not produce documents to support these claims. It noted that the developer failed to place on record demand notices, possession letters, reminders, a final notice, cancellation letter or proof of forfeiture.The commission held that the developer failed to justify the delay in completing the project and providing possession.It directed the developer to hand over Flat No. 803, Block N, with promised basic amenities and statutory approvals within one month of receiving the certified order. The developer must also execute and register the sale deed after receiving any balance amount legally payable under the agreement.The commission granted the complainants 9% annual interest from July 17, 2013, until actual possession. Alternatively, if the complainants do not want possession, the developer must refund ₹41.6 lakh with 9% interest from July 17, 2013, within 30 days. If it fails to refund the amount within that period, the interest rate will rise to 12% until payment. The commission also ordered payment of ₹3 lakh as compensation for mental agony, harassment and litigation expenses.