NCDRC Mandates Godrej to Refund Rs 89 Lakh with Interest Over 14-Year Road Delay in Gurgaon
The National Consumer Disputes Redressal Commission (NCDRC) has issued a landmark order, directing Godrej Premium Builders Private Limited to refund the entire amount of Rs 89.24 lakh along with interest to a consumer in Gurgaon. This decision comes after a protracted 14-year wait for a promised access road, highlighting significant deficiencies in service by the developer.
Case Background and Consumer Complaint
The complaint was filed by Inderdeep Singh, who booked a residential unit in the Godrej Summit project in Sector 104, Gurgaon, on September 10, 2012. A builder-buyer agreement was executed on March 25, 2013, stipulating possession within 49 months, including a six-month grace period. Singh paid Rs 89.24 lakh out of the total sale consideration of Rs 90.76 lakh.
Despite an offer of possession dated June 29, 2017, the consumer alleged that the project was incomplete and uninhabitable. Key grievances included:
- Absence of a permanent water connection, with supply reliant on tankers.
- Electricity drawn from an adjoining society, rendering the occupancy certificate ineffective.
- Incomplete amenities such as the clubhouse, internal roads, lifts, fire safety systems, and common areas.
- Most critically, the lack of a proper 24-meter wide road connecting the project to the Dwarka Expressway, as promised in the brochure.
NCDRC's Findings and Rationale
In its ruling on January 27, a bench comprising President A P Sahi and Member Bharat Kumar Pandya emphasized that homebuyers cannot be made to wait indefinitely for essential infrastructure. The commission noted:
- The promised 24-meter road has not been provided even after 14 years, with no clear timeline for completion.
- The developer's argument that the road is the responsibility of state authorities does not absolve them of their obligation, as it was an integral part of the project promise.
- Photographs submitted by the complainant showed only a katcha road, which does not fulfill the promised connectivity.
- The pendency of a writ petition before the Punjab and Haryana High Court does not excuse the deficiency, as the road remains non-existent.
The NCDRC stated, "The complainant cannot be held to await the completion or otherwise availability of connectivity of the 24 meter road... It is the obligation of the opposite parties to have provided the road."
Builder's Defense and Commission's Rejection
Represented by senior advocate Sudhir Makkar, the builder denied any deficiency, asserting that possession was offered within the contractual timeline after obtaining an occupancy certificate on April 7, 2017. They argued:
- The 24-meter road within the project area had been constructed.
- The remaining portion outside the licensed area was the state government's responsibility.
- A petition filed in 2018 before the Punjab and Haryana High Court sought directions for land acquisition and road construction, indicating the issue was beyond their control.
The NCDRC dismissed these arguments, noting that the promised road was a major component that attracted the buyer, and its absence constitutes a clear deficiency in service.
Order and Directions for Refund
Allowing the complaint, the NCDRC issued the following directions:
- Refund of the entire Rs 89.24 lakh paid by the consumer.
- Interest at 9% per annum from the date of each payment.
- Compliance within one month of the order.
- In case of default, the interest rate will escalate to 12% per annum.
The commission referenced similar past cases, clarifying that Supreme Court proceedings have not overturned the factual findings of such deficiencies, reinforcing the validity of this decision.
Implications for Consumer Rights and Real Estate Sector
This ruling underscores the NCDRC's firm stance on holding developers accountable for promised amenities. It serves as a precedent for homebuyers facing similar issues, emphasizing that delays in critical infrastructure like access roads can warrant full refunds with interest. The case highlights the importance of transparency and adherence to project commitments in India's real estate market, particularly in high-growth areas like Gurgaon.
