The UT District Consumer Dispute Redressal Forum has directed Sahara India Parivar, owner of Sahara City Homes, to refund Rs 2.57 lakh given by a resident of Sector 40 as advance for allotment of a flat.

According to the complainant, O P Arora, in response to advertisements by Sahara City Homes of assured physical possession of the flat within 2 years, he deposited Rs 85,750 as membership fee for allotment of a two bedroom flat on March 3, 2005.

Accordingly, he was allotted a flat with unit area 86.15 sq metres. Thereafter, on demand, he further deposited Rs 1.71 lakh in January 2006.

In his complaint, Arora alleged that he waited for allotment of the flat up to March 2007 but in vain. He also visited the Sahara office a number of times, but no satisfactory answer was given to him. Rather, he alleged, they kept on giving one excuse after another with further assurances that flat would be allotted very soon.

On February 11 this year, Arora served a legal notice to the company but failed to get any response, after which he approach the consumer forum.

In its reply, Sahara City Homes, Chandigarh, stated that the amount of Rs 2.57 lakh was only an advance towards the flat and as and when the project will be operational, the complainant would be given preference in allotment. They added that the advance does not bind them in any contractual liability with respect to the flat until the allotment is made. The company pleaded that the construction project was subject to various statutory compliances and the developers were at the mercy of the competent authorities, which took time to issue the compliance certificates.

... contd.