Fit-out possession does not count as delivery of flat

Doctor couple Pankaj and Manisha Mahendra used to frequently visit Chandigarh for work.

- JEHANGIR B GAI

On June 5, 2015, they paid an advance of ₹5 lakh to book a residential unit under the subvention scheme in a project called “The Lake”, which Omaxe Chandigarh Extension Developers was developing at Mullanpur. Flat number 1901 was allotted to them in Tower Victoria C, with an assurance of timely possession by June 18, 2019, and allowing for a grace period of six months. Premium lifestyle amenities such as a club, swimming pools, central lawns, a yoga and meditation centre, guest parking, and other facilities were promised.

A housing loan of ₹68,88,000 was arranged by the builder, which undertook to pay the Equated Monthly Installments (EMIs) until possession.

Since the builder defaulted on payments to the bank, the complainants were required to pay the EMIs. Even though they paid a total of ₹68,46,999, construction remained incomplete, and even the basic structure of the tower was not ready. Yet, on March 11, 2024, the builder issued a letter offering possession for fit-out, along with a demand of ₹2,23,278.42 as interest for delayed payment.