NEW DELHI: The Delhi consumer court has held a Ghaziabad-based housing society guilty of delaying the possession of flats for over 15 years and directed it to refund over Rs 79 lakh to two homebuyers along with compensation of Rs 5 lakh.
Background of the Case
The complainants became members of the housing society in 2010 and applied for 3BHK flats in a residential project planned in Noida. The society had promised to hand over possession by 2012, according to a report by Bar and Bench.
After a land dispute, the society shifted the project to Ghaziabad and increased the cost of flats from around Rs 24 lakh to about Rs 28.7 lakh for a 1599 sq ft 3BHK unit.
The homebuyers said they kept paying lakhs of rupees, partly through home loans, as the society repeatedly demanded more money over the years. Ultimately, they paid Rs 39,08,865 and Rs 40,34,234 respectively, far exceeding the originally agreed price.
The society sent them allotment letters in June 2019, nearly six years after the agreement, but never actually handed over the flats.
What Did the Consumer Commission Rule?
A bench comprising Justice Sangita Dhingra Sehgal (President) and Bimla Kumari (Member) held the housing society guilty of deficiency in service. The society argued that, as a cooperative society, it could not be treated as a service provider and the case should not apply to it.
However, the commission stated that the law clearly counts a cooperative society as a "person" that can provide services. Since the buyers paid money for their flats, they qualify as consumers, and the society can be held responsible.
The society further argued that the case should not be heard because the project was registered under RERA. The commission rejected this too, citing a Supreme Court ruling that "there is nothing in the RERA Act which bars" consumer cases, and buyers can choose to approach either the consumer court or RERA.
On the delay, the commission said that if possession is not given within 42 to 48 months, it amounts to deficiency in service. It rejected the society's excuses of land disputes, rising costs, environmental rules, and COVID-19, noting that the society failed to provide any documentary evidence to explain the delay, and the project was already delayed before the pandemic.
The commission concluded that the society "kept the amounts deposited by the complainants for almost sixteen years" without handing over the flats.
Relief Ordered
As relief, the society was ordered to refund Rs 39,08,865 to the first complainant and Rs 40,34,234 to the second, with 8.25% annual interest from the date of each payment until June 8, 2026, the date of the order.
If the society fails to pay the full amount by August 8, 2026, the interest rate rises to 11.25% until the money is actually paid. The commission also ordered Rs 2 lakh each for mental agony and Rs 50,000 each for legal costs, bringing the total compensation to Rs 5 lakh.
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