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Big relief for homebuyers! They can now seek refund if flat delayed beyond 1 year

The NCDRC Held That Homebuyers Can Seek Their Refund From The Builder In Case The Possession Is Delayed One Year Beyond The Date Promised By The Builder.

News Nation Bureau | Edited By : Shashikant Sharma | Updated on: 17 May 2019, 10:55:35 AM
Big relief for homebuyers! they can now seek refund if flat delayed beyond 1 year

New Delhi:

In a big relief for thousands of homebuyers seeking possession for years, the National Consumer Disputes Redressal Commission (NCDRC) has set a dealine of one year for delayed projects beyond which the buyers can seek refund from the builders. The NCDRC held that homebuyers can seek their refund from the builder in case the possession is delayed one year beyond the date promised by the builder.

Earlier, the apex consumer commission as well as the Supreme Court had said that homebuyers can't be made to wait undefinitely but there was no set of time limit beyond which the buyers could seek refund from the builders.

Hearing a plea filed by Delhi resident Shalabh Nigam, a bench headed by Prem Narain said, "It is now established that allottees have the right to ask for refund if possession is inordinately delayed, particularly beyond one year."

Nigam had bought a flat in a luxury housing project in Gurugram (Gurgaon) in 2012 and made an advance payment of Rs 90 lakh of the total cost which was around Rs 1 crore. The builder had promsied him to give possession of the flat within 36 months from the date of allotment.

The builder, however, failed to deliver on his promise after which Nigam approached the commission seeking its direction to the builder to either refund or give possession of the flat.

The commission ordered the builder to complete the project by September 2019 and give possession to Nigam. It also ordered the builder to pay compensation to Nigam at the rate of 6 per cent per year on the total deposit for the delayed period even if gets the possession of the flat he had been allotted.

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First Published : 17 May 2019, 10:55:35 AM