Builders cannot compel buyers to take possession of unfinished flats
Real Estate

Builders cannot compel buyers to take possession of unfinished flats

The National Consumer Disputes Redressal Commission (NCDRC) has ruled that a builder cannot force a homebuyer to take possession of a flat that is not fully constructed and for which no completion certificate has been issued by the local authority and that doing so is an unfair trade practice. This ruling could help many consumers who find themselves in a similar situation.

A Bengaluru-based real estate company was ordered by a bench of C Viswanath and Ram Surat Ram Maurya to refund the entire amount of around Rs 3.5 crore, plus interest, to a buyer who refused to take possession of a villa without a completion certificate and filed a complaint against the builder. The panel issued the order after noting that the flat had been under construction for more than two years and was still incomplete and unlivable.

When the complainant went to take possession, the builder insisted that they sign a paper stating that they were receiving possession of the villa in a fully ready condition, ostensibly to comply with the builder's alleged rule that they had to sign if they wanted to take the key to the villa. This was a deceptive business practice. The builder's action of offering possession with incomplete construction and without obtaining a Completion Certificate is not justified.

Suman Kumar Jha and Pratibha Jha, the buyers, in this case, had reserved a 3,900 sq ft luxury villa in Mantri Technology Constellation Private Limited's Chennai project in 2013. By May 2015, the builder had promised to finish the work and hand over the keys to the villa. The couple had paid the builder all instalments by the construction-related plan.

Image Source

The National Consumer Disputes Redressal Commission (NCDRC) has ruled that a builder cannot force a homebuyer to take possession of a flat that is not fully constructed and for which no completion certificate has been issued by the local authority and that doing so is an unfair trade practice. This ruling could help many consumers who find themselves in a similar situation. A Bengaluru-based real estate company was ordered by a bench of C Viswanath and Ram Surat Ram Maurya to refund the entire amount of around Rs 3.5 crore, plus interest, to a buyer who refused to take possession of a villa without a completion certificate and filed a complaint against the builder. The panel issued the order after noting that the flat had been under construction for more than two years and was still incomplete and unlivable. When the complainant went to take possession, the builder insisted that they sign a paper stating that they were receiving possession of the villa in a fully ready condition, ostensibly to comply with the builder's alleged rule that they had to sign if they wanted to take the key to the villa. This was a deceptive business practice. The builder's action of offering possession with incomplete construction and without obtaining a Completion Certificate is not justified. Suman Kumar Jha and Pratibha Jha, the buyers, in this case, had reserved a 3,900 sq ft luxury villa in Mantri Technology Constellation Private Limited's Chennai project in 2013. By May 2015, the builder had promised to finish the work and hand over the keys to the villa. The couple had paid the builder all instalments by the construction-related plan. Image Source

Next Story
Infrastructure Urban

Aadhaar Authentications Cross 27 Billion in FY25

Aadhaar authentication transactions surged past 27.07 billion in FY 2024–25, including 2.47 billion in March alone, reflecting its growing adoption across sectors such as banking, finance, telecom, and public service delivery. Since its inception, the cumulative number of Aadhaar authentication transactions has exceeded 148 billion.The Unique Identification Authority of India’s (UIDAI) AI/ML-based face authentication technology is also witnessing a sharp rise in usage. In March 2025 alone, over 150 million face authentication transactions were recorded. This biometric modality is now used ..

Next Story
Infrastructure Urban

IEPFA Holds Preparatory Meet for 'Niveshak Shivir' Initiative

The Investor Education and Protection Fund Authority (IEPFA), under the Ministry of Corporate Affairs, Government of India, hosted a preparatory meeting on April 28, 2025, with Nodal Officers from stakeholder companies via video conference. The session, chaired by IEPFA CEO Smt. Anita Shah Akella, focused on finalising operational plans for the upcoming ""Niveshak Shivir"" initiative—a joint effort between IEPFA and the Securities and Exchange Board of India (SEBI).""Niveshak Shivir"" aims to improve investor services and streamline the claims process by reaching out to cities with a high nu..

Next Story
Infrastructure Urban

India, France Sign Deal for 26 Rafale-Marine Jets for Navy

India and France have signed an Inter-Governmental Agreement (IGA) for the acquisition of 26 Rafale-Marine aircraft for the Indian Navy, comprising 22 single-seater and four twin-seater jets. The deal also includes training systems, simulators, associated equipment, weapons, and performance-based logistics, along with additional equipment for the Indian Air Force’s existing Rafale fleet.The IGA was signed by India’s Defence Minister Rajnath Singh and French Minister of Armed Forces Sébastien Lecornu. The agreement, along with supply protocols for aircraft and weapons, was exchanged in the..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?