NCDRC holds Sushma Buildtech Liable for deficiency in service
Real Estate

NCDRC holds Sushma Buildtech Liable for deficiency in service

The National Consumer Disputes Redressal Commission (NCDRC), under the presidency of AVM J. Rajendra, ruled that builders cannot compel buyers to accept possession of property after significant delays. The commission affirmed the buyer's right to either accept delayed possession or seek appropriate compensation. The complainant had booked a flat with Sushma Buildtech, and a Flat Buyers Agreement was executed specifying possession within 30 months (24 months plus a 6-month grace period). Despite receiving 97% of the sale price, the builder failed to deliver possession within the agreed timeframe. Dissatisfied with the delay, the complainant filed a consumer complaint with the Punjab State Commission, seeking relief.

The State Commission ruled in favour of the complainant, ordering the builder to compensate at the rate of ?5 per sq. ft. per month of the flat's super area from the stipulated delivery date until possession, along with 6% annual simple interest on the deposited amount of Rs 5.43. Additionally, litigation costs of Rs 65,000 were awarded. Aggrieved by this decision, the builder appealed to the National Commission. The builder contended that the complaint lacked pecuniary jurisdiction, arguing that the complainants, who owned another property and purchased the flat for speculative purposes, did not qualify as 'consumers' under the law. The builder denied any service deficiency, citing project development challenges such as labour shortages, sand scarcity, and demonetization. They maintained that all necessary approvals were in place as stipulated in the Apartment Buyer's Agreement. The NCDRC observed that the complainants had paid Rs 6.42 million towards the flat, as evidenced by receipts. Despite fulfilling their financial obligations, the builder failed to meet the possession deadline agreed upon in the contract. Emphasising the rights of homebuyers, the commission referenced precedents such as Emmar MGF Land Ltd. & Ors. Vs. Amit Puri and Pioneer Urban Land & Infrastructure Ltd. Vs. Govindan Raghvan, affirming that buyers have the right to seek compensation for possession delays.

Modifying the State Commission's order, the National Commission directed the builder to pay 6% simple interest on the deposited amount of Rs 6.42 million from the date the flat was due for possession until delivery. Additionally, Rs 100,000 was awarded to the complainants for litigation expenses.

(Source: Live Law)

The National Consumer Disputes Redressal Commission (NCDRC), under the presidency of AVM J. Rajendra, ruled that builders cannot compel buyers to accept possession of property after significant delays. The commission affirmed the buyer's right to either accept delayed possession or seek appropriate compensation. The complainant had booked a flat with Sushma Buildtech, and a Flat Buyers Agreement was executed specifying possession within 30 months (24 months plus a 6-month grace period). Despite receiving 97% of the sale price, the builder failed to deliver possession within the agreed timeframe. Dissatisfied with the delay, the complainant filed a consumer complaint with the Punjab State Commission, seeking relief. The State Commission ruled in favour of the complainant, ordering the builder to compensate at the rate of ?5 per sq. ft. per month of the flat's super area from the stipulated delivery date until possession, along with 6% annual simple interest on the deposited amount of Rs 5.43. Additionally, litigation costs of Rs 65,000 were awarded. Aggrieved by this decision, the builder appealed to the National Commission. The builder contended that the complaint lacked pecuniary jurisdiction, arguing that the complainants, who owned another property and purchased the flat for speculative purposes, did not qualify as 'consumers' under the law. The builder denied any service deficiency, citing project development challenges such as labour shortages, sand scarcity, and demonetization. They maintained that all necessary approvals were in place as stipulated in the Apartment Buyer's Agreement. The NCDRC observed that the complainants had paid Rs 6.42 million towards the flat, as evidenced by receipts. Despite fulfilling their financial obligations, the builder failed to meet the possession deadline agreed upon in the contract. Emphasising the rights of homebuyers, the commission referenced precedents such as Emmar MGF Land Ltd. & Ors. Vs. Amit Puri and Pioneer Urban Land & Infrastructure Ltd. Vs. Govindan Raghvan, affirming that buyers have the right to seek compensation for possession delays. Modifying the State Commission's order, the National Commission directed the builder to pay 6% simple interest on the deposited amount of Rs 6.42 million from the date the flat was due for possession until delivery. Additionally, Rs 100,000 was awarded to the complainants for litigation expenses. (Source: Live Law)

Next Story
Equipment

Caterpillar Debuts Three New Cat Excavators at EXCON 2025

Caterpillar Inc., a global leader in construction and mining machinery, strengthened its commitment to India’s infrastructure growth with the debut of three new Cat® hydraulic excavators at EXCON 2025, held from December 9–13 at the Bangalore International Exhibition Centre. The new models—Cat 321, Cat 322 and Cat 324—mark a significant step forward in delivering efficient, digital-ready equipment tailored for India’s evolving construction needs.Designed to support sustainability and productivity on modern jobsites, the machines feature advanced powertrains and intelligent electrohy..

Next Story
Equipment

JK Tyre Expands OTR Lineup with Four New Launches at EXCON 2025

JK Tyre & Industries, one of India’s leading tyre manufacturers, introduced four new Off-the-Road (OTR) tyres at the 13th edition of CII EXCON 2025, South Asia’s largest construction equipment exhibition, underway at the Bangalore International Exhibition Centre. The latest additions strengthen the company’s OTR portfolio and reaffirm its focus on delivering advanced mobility solutions for construction, mining and industrial operations.The new tyres were unveiled by R Mukhopadhyay, Director (R&D), JK Tyre. Among the highlights was the debut of the SKY GRIP, a specialised tyre des..

Next Story
Equipment

ACE, Sanghvi Movers Ink MOU to Boost India-Made Heavy Crane Adoption

Action Construction Equipment (ACE), the world’s largest pick-and-carry crane manufacturer and a leading Indian construction equipment maker, has entered into a strategic Memorandum of Understanding with Sanghvi Movers, Asia’s largest and the world’s fifth-largest crane rental company. The partnership aims to accelerate the deployment of indigenously manufactured heavy slew cranes, particularly truck cranes and crawler cranes, across large-scale infrastructure and industrial projects in India.The alliance aligns strongly with the Government of India’s “Aatmanirbhar Bharat” and “M..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App