A real estate developer has been directed by the District Consumer Disputes Redressal Commission-II, Chandigarh, to refund more than Rs 36 lakh along with compensation to a homebuyer who was kept waiting indefinitely for possession of her flat, years after the promised date. The commission held that a buyer cannot be forced to wait endlessly for a flat or plot when the builder fails to complete the project and hand over possession within a reasonable time.
Background of the Case
The complainant booked a 2 BHK flat in a project launched by the developer and paid a booking amount of Rs 4,00,000. Subsequently, she paid Rs 30,34,000 towards the sale price on March 5, 2021. The sales representative allegedly informed her that the flat was nearly ready and possession would be handed over by October 2021. However, possession was never delivered, and the company kept giving fresh assurances, including a promise of possession by March 2022, which was also not fulfilled. Additionally, she paid an extra Rs 2,02,000 towards tiling charges demanded by the developer.
In August 2023, frustrated by the delay, the complainant approached the Real Estate Regulatory Authority (RERA), and both parties signed a settlement agreement in August 2024. Under the agreement, the company agreed to pay her Rs 24,000 per month as compensation for the delay, with a 7% hike if possession was still not given by June 30, 2025. However, the company later stopped paying this amount, citing a lack of funds, and construction at the project came to a complete halt. The complainant then approached the consumer court seeking a refund of her money at current market value, continued monthly rent until the case was resolved, and compensation for mental agony and harassment.
Commission's Ruling
The bench, comprising President Amrinder Singh Sidhu and Member B.M. Sharma, noted that the developer did not appear despite being served notice and was proceeded against ex-parte. The bench held that the evidence clearly showed possession was never delivered, even though it was due back in January 2022, and the developer kept postponing it. The prolonged delay amounted to a deficiency in service and caused financial loss and mental harassment to the buyer.
The commission further observed that the company itself acknowledged the delay and agreed to pay compensation but defaulted on that as well. It cited the National Consumer Disputes Redressal Commission's rulings in Sujay Bharatiya v. Unitech Reliable Projects and Sanjiv Kumar Jain v. Lodha Crown Buildmart, both holding that prolonged, unexplained delay in handing over possession entitles a buyer to a refund.
The commission rejected the complainant's demand for a refund at current market value, noting that consumer law ordinarily allows refund of the amount actually paid, along with compensation. The developer was held responsible for the delay and directed to pay the full Rs 36,36,000 deposited by the complainant, continue paying the delay compensation agreed under the 2024 settlement agreement until the refund is actually paid, and pay an additional Rs 50,000 towards harassment and litigation costs.
The order must be complied with within 45 days, failing which the company will have to pay Rs 1,000 per day as additional penalty.
