+
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)

Related Stories

Gold Stories

Next Story
Real Estate

Kamdhenu Realities acquires 4-acre Navi Mumbai land parcel

Kamdhenu Realities has acquired a 4-acre land parcel from RPG Life Sciences on Thane-Belapur Road for approximately Rs 1.5 billion, expanding its commercial real estate portfolio in Navi Mumbai.The parcel has a total developable potential of 1.8 million sq ft, on which Kamdhenu plans to develop a destination-scale commercial and lifestyle ecosystem. The proposed development will combine corporate office suites with high-street retail, F&B outlets, double-height lobbies, business infrastructure and lifestyle amenities.Located close to IKEA and opposite the upcoming Pawane Railway Station, t..

Next Story
Infrastructure Transport

97 Per Cent Of Rongjeng-Mangsang-Adokgre Road Nears Completion

Deputy Chief Minister in-charge of public works Prestone Tynsong said in Shillong on 26 August that 97 per cent physical progress had been achieved on the ongoing Rongjeng-Mangsang-Adokgre road being constructed under the Non-Lapsable Central Pool of Resources (NLCPR). He noted the project was sanctioned in 2017 and that the stipulated time for completion had been 24 months from issue of the final work order. The deputy chief minister informed the assembly that the government had decided to include the remaining work under a World Bank project. In reply to a query from Rongjeng MLA Jim M Sangm..

Next Story
Infrastructure Transport

First TBM Starts Digging Five Point Three Kilometre Tunnel Under SGNP

The Goregaon-Mulund Link Road (GMLR) Phase three (B) project has reached a key milestone as the first tunnel boring machine (TBM) began excavation of the first of two tunnels beneath the Sanjay Gandhi National Park (SGNP). The machine, named Tulsi, started cutting a five point three kilometre bore that will link Dadasaheb Phalke Chitranagari in Goregaon East with Amar Nagar in Mulund West. Officials issued a statement noting the commencement of tunnelling work under the protected green belt. The twin tunnels are being constructed using mechanised tunnelling methods that aim to limit surface di..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code