NCDRC asks Supertech to refund over Rs.1 Crore  to buyer

The National Consumer Disputes Redressal Commission (NCDRC) in its recent order make it valid that the homebuyers can challenge builders for a full refund if the possession of the flats is delayed by a year from the agreed date of final delivery. At the same time, a homebuyer can’t be forced to forfeit any amount deposited with a builder in case he attempts cancellation of allotment of flat for the delay in possession.

Builders always set the harsh clauses in the agreement in order to discourage homebuyers from canceling the allotment on forfeiture of a large amount deposited by buyers. But the NCDRC regarded that real estate companies can’t petition such rigid clauses in cases where the buyers are forced to the cancelation of his/her unit due to excessive delay in completion of any project.

In a recent judgment, a bench of Justice V K Jain restricted Supertech Limited from forfeiting 15% of the flat cost as cancelation charges after a buyer asked a refund of money as the company unable to deliver the house in its Noida housing project by December 2016 as per the agreement including the grace period of 6 months.

This case is about Chandan Gupta who had booked a residential flat with Supertech’s project “ORB Towers” in Sector-74, Noida for payment of Rs.2.36 crore. The commission gave the order in favor of him.

The commission also directed Supertech Ltd to repay the entire principal amount of Rs 1.08 crore along with compensation in the form of simple interest at 10% per annum from the date of each payment till the date of refund to the buyer within 3-months.

The Commission has passed this order in the wake of continuous delays the homebuyers have to face to take the possession of their flats. Earlier, the Supreme Court and several consumer courts in the past judged that the end buyers can’t be forced to wait unlimitedly to take the possession of their flats.