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Reading: NCDRC directed CHD Developers to refund money to home-buyers @12% interest on account of delay
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Home » Blog » NCDRC directed CHD Developers to refund money to home-buyers @12% interest on account of delay
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NCDRC directed CHD Developers to refund money to home-buyers @12% interest on account of delay

By Legal Desire 4 Min Read
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A group of innocent homebuyers approached Hon’ble National Consumer Dispute Redressal Commission (NCDRC)  for seeking refund on account of delay committed by the builder in handing over of possession of the booked units. The Hon’ble NCDRC held that once it is proved that Delay has been committed by the Builder in  completing the project and no reasonable explanation has been averred and proved then the same amount to gross deficiency of service and the commission is enabled in law and competent to grant refund to the innocent homebuyers.
Advocate Vivek Singh of Lex Alliance appeared for the complainants.

According to the complainants, they have booked their respective flats in the same project of the CHD Developers; entered into identical agreements to sell with them and the issues regarding their allotment such as delay in handing over possession, deficiency in construction, illegal demands by the Developer and huge gap in super area and carpet area, are identical and resultantly almost same reliefs were prayed by all.

The complainants have alleged that on account of possession of the appartments not being handed over to the complainants within the committed period, they are paying huge interest on the money paid to the Developer while on the other hand, they are incurring huge cost/rent/loss of rent due to non-availability of the said residential appartments. The Developer made the false statements only with a malafide intention to extract the remaining 5% amount which is due at the time of the possession. The Developer secured for itself favourable terms by reserving claim of 18% interest on delayed payments, whereas for paying compensation for delay in possession they has only offered to pay @Rs.5/per sq. ft. per month of the super area of the flat, that too in case delay is beyong six months.

To the complaint, the main contention of the Developers is that the construction of the Project was affected due to shortage of water since the Hon’ble Punjab and Haryana High Court stopped the usage of underground water. Number of requests made to the concerned authorities to de-seal the existing tube wells for supply of water, were not acceded to. They had to invest huge amounts in the installation of water treatment in order to resume the construction. Despite the payment of the External Development Charges and persuasive efforts with the State Authorities, there was no development by the State to provide the basic amenities at the Project and there was also delay on their part in issuing the Occupation Certificate. In terms of a clause mentioned in agreement such delay provides extension of time, if the delay was on account of any stay or prohibitory order passed by any competent authority or Force Majeure events.

NCDRC on hearing the parties, considered view that the complainants are entitled for refund of the principal amount with reasonable compensation and issued directions that the developer has to refund the entire amount deposited by the Complainants/Flat Purchasers who have not taken possession of the Apartments alongwith the compensation @12% p.a from the date of deposit till the actual date of payment;
The Developer is also liable to pay Rs.50,000/- as cost of litigation to each of the Complainants/Flat purchasers who have not taken possession of the Apartment and to whom the refund is being made with four weeks from the date of order i.e, failing which the amount of compensation shall be increased to 15% p.a.

 

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Legal Desire September 29, 2019
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