Builders to pay compensation for delay in possession

22 Jan 2022 CW Team

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.

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