Builders to pay compensation for delay in possession
Real Estate

Builders to pay compensation for delay in possession

In a recent verdict, the National Consumer Disputes Redressal Commission (NCDRC) said that the homebuyers are entitled to receive compensation for delays until they receive possession of their completed homes.

A builder must not offer possession for an incomplete unit. The verdict has provided a big relief to homebuyers who previously avoided taking legal action against builders.

The case was filed by Vikas Mittal, a homebuyer who was not given possession of his flat in Delhi by the DLF Home Developers project. He sought redressal in the NCDRC and later won the case.

The individual had booked a flat in the Delhi DLF project in September 2009. He had also deposited a booking amount of Rs 7.5 lakh. As per the agreement the home was to be handed over within three years from the date of application which was by September 2012.

There was a delay in handing over the possession for around five years. The court gave a verdict that the buyer must be paid compensation at the rate of 6% per annum on the booking amount deposited by the builder for the delay. The compensation should be paid within a period of six weeks from the date of the order.

If there is any delay in the payment of compensation the rate shall be increased to per annum.

Image Source

In a recent verdict, the National Consumer Disputes Redressal Commission (NCDRC) said that the homebuyers are entitled to receive compensation for delays until they receive possession of their completed homes. A builder must not offer possession for an incomplete unit. The verdict has provided a big relief to homebuyers who previously avoided taking legal action against builders. The case was filed by Vikas Mittal, a homebuyer who was not given possession of his flat in Delhi by the DLF Home Developers project. He sought redressal in the NCDRC and later won the case. The individual had booked a flat in the Delhi DLF project in September 2009. He had also deposited a booking amount of Rs 7.5 lakh. As per the agreement the home was to be handed over within three years from the date of application which was by September 2012. There was a delay in handing over the possession for around five years. The court gave a verdict that the buyer must be paid compensation at the rate of 6% per annum on the booking amount deposited by the builder for the delay. The compensation should be paid within a period of six weeks from the date of the order. If there is any delay in the payment of compensation the rate shall be increased to per annum. Image Source

Next Story
Real Estate

Mahindra Lifespaces Bags Rs 12.5 billion Redevelopment in Mulund

Mahindra Lifespace Developers (MLDL), the real estate and infrastructure development arm of the Mahindra Group, has been appointed as the preferred developer for the redevelopment of a premium housing society in Mulund (West), Mumbai. The project will be developed across a 3.08-acre land parcel, with an estimated development value of approximately Rs 12.5 billion. Strategically located, the site enjoys proximity to major connectivity points—just 1.4 km from the upcoming Mumbai Metro Line 5 and 0.8 km from the Goregaon-Mulund Link Road. It also offers seamless access to the Eastern Expre..

Next Story
Infrastructure Urban

Snowman Adds Warehouses in Kolkata and Krishnapatnam

Snowman Logistics, India’s leading integrated temperature-controlled logistics company, has announced the commencement of operations at its two new state-of-the-art, owned cold storage facilities in Kolkata and Krishnapatnam. With these additions, the company’s total pallet capacity has reached 1,50,754, spanning 43 warehouses in 20 cities across the country. The newly operational Kolkata facility offers a storage capacity of 5,630 pallets, while the Krishnapatnam facility holds 3,927 pallets. These warehouses are equipped with advanced automation and infrastructure designed to enhanc..

Next Story
Resources

Noesis Enables IHCL Hotel Deal in Udupi–Manipal Corridor

NOESIS Capital Advisors, India’s leading hotel investment advisory firm, has successfully facilitated a landmark hospitality transaction in the Udupi–Manipal region of Karnataka. The deal involves the acquisition of a nearly completed, 130-key upscale hotel that will operate under one of the premium brands of IHCL, reinforcing NOESIS’ position as a preferred partner for strategic hospitality transactions across India. Strategically located on the Udupi–Manipal Highway, the 1.03-acre property will cater to business travellers, pilgrims and families visiting Manipal University. With..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?