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
Infrastructure Energy

We are among the global top 3 in tech adopti

As energy gains global importance, L&T has built a strong presence across hydrocarbons, power, renewables and green technologies. With energy contributing significantly to its revenues, the company is now focused on sustainability and future readiness. In conversation with PRATAP PADODE, Editor-in-Chief, CW, Subramanian Sarma, Deputy Managing Director & President, L&T outlines the company’s strategy for transition, talent and technology.With energy becoming increasingly vital and a key contributor to L&T’s revenues, how do you see the segment evolving?We’ve been..

Next Story
Real Estate

Redevelopment Rush!

Mumbai is on the cusp of an urban transformation, driven by the pressing need to replace ageing, unsafe buildings with modern, high-density developments. The scale and pace of redevelopment across the city is unprecedented – and yet fraught with complexity.Redevelopment has become a defining strategy for urban renewal in Mumbai. One of the most challenging aspects is the displacement it entails – residents are often required to vacate their homes and live in transit accommodations until the new structures are ready. This raises valid concerns: Will the transit housing meet our needs? Will ..

Next Story
Infrastructure Urban

Vedanta Metal Bazaar Achieves Sales Value of Rs 400 Bn

On National MSME Day, Vedanta, India’s leading critical minerals, transition metals, energy and technology conglomerate announced that its non-ferrous metals e-store has achieved a staggering Rs 400 billion in total sales value. Operated under the name of Vedanta Metal Bazaar, it is the world’s largest non-ferrous metals e-store offering more than 1200 stock keeping units (SKUs) across metals such as aluminium, zinc, lead and copper. The platform brings ease-of-doing business for customers on their fingertips by providing a streamlined, digital-first solution that enables businesses to pro..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?