Elevator company fined Rs 6.5 lakh for 10-year project delay
26 Jun 2013 10:51 PM GMT
A delay of about a decade in installing elevators has cost a private company Rs 6.5 lakh, with the national consumer commission fining it for deficiency in service and harassing members of a cooperative group housing society in the capital.
OTIS Elevators was also told by the National Consumer Disputes Redressal Commission to pay nine per cent interest from February 12, 2000, when the Talaganj Cooperative Group Housing Society in north Delhi’s Rohini area filed a suit against the company for installing just about half of the 22 elevators for which advance payment had been made in 1998.
‘It must be borne in mind that the amount of entire elevators has already been paid (to the company).
They are enjoying the amount, for the last more than a decade. The case of the society stands fully established,’ said the commission’s presiding member, J M Malik, and member Vinay Kumar in a
recent judgment.
‘We direct OTIS Elevators to install the remaining elevators and get them in working condition... otherwise they will be liable to pay penal costs of Rs 10,000 per day,’ Malik said.
‘The deficiency on the part of the company stands proved,’ Malik added, giving the company time till 31 August to comply with its directions.
Offerng relief to the society, he said: ‘Litigation charges, compensation for harassment and mental agony, is awarded at the rate of Rs 50,000 per year, from the date of filing of this complaint before this commission on 12 February,
2000, till the needful is done, and it will carry interest at the rate of nine per cent per year, from Feb 12, 2000, till the elevators are installed.’
The society said the company did not take up the installation work till June 2000. And when it did, it took four months to install only 11 elevators. Thereafter, it abandoned the work despite receiving the full payment.
The elevator company, however, said that the delay in the installation was due to the society’s laxity in paying the advance payment.
OTIS Elevators was also told by the National Consumer Disputes Redressal Commission to pay nine per cent interest from February 12, 2000, when the Talaganj Cooperative Group Housing Society in north Delhi’s Rohini area filed a suit against the company for installing just about half of the 22 elevators for which advance payment had been made in 1998.
‘It must be borne in mind that the amount of entire elevators has already been paid (to the company).
They are enjoying the amount, for the last more than a decade. The case of the society stands fully established,’ said the commission’s presiding member, J M Malik, and member Vinay Kumar in a
recent judgment.
‘We direct OTIS Elevators to install the remaining elevators and get them in working condition... otherwise they will be liable to pay penal costs of Rs 10,000 per day,’ Malik said.
‘The deficiency on the part of the company stands proved,’ Malik added, giving the company time till 31 August to comply with its directions.
Offerng relief to the society, he said: ‘Litigation charges, compensation for harassment and mental agony, is awarded at the rate of Rs 50,000 per year, from the date of filing of this complaint before this commission on 12 February,
2000, till the needful is done, and it will carry interest at the rate of nine per cent per year, from Feb 12, 2000, till the elevators are installed.’
The society said the company did not take up the installation work till June 2000. And when it did, it took four months to install only 11 elevators. Thereafter, it abandoned the work despite receiving the full payment.
The elevator company, however, said that the delay in the installation was due to the society’s laxity in paying the advance payment.
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