Can seek 10% extra refund if flat delayed beyond 1 year: NCDRC | One year grace period given to housing projects
Lakhs of disgruntled home buyers are forced to wait for possession of their flats for years; the verdict of the apex consumer commission comes as great relief to real-estate customers.
“It is now established that allottees have the right to ask for refund if possession is inordinately delayed, particularly beyond one year,” said Prem Narain, Member of National Consumer Disputes Redressal Commission (NCDRC).
- Buyers can strive for refund if possession is delayed by one year beyond the date committed by the builder.
- Supreme Court and consumer courts, have repeatedly held that home buyers cannot be made to wait indefinitely.
- The commission passed the order on a petition by a Delhi resident who experienced a dispute when he bought a flat which got delayed.
With the NCDRC’s verdict ordering the builder to complete the remaining construction as per the buyer’s preference to take possession of the flat, such cases across the country will be viewed in the same light.
The commission also directed the builder to pay compensation at the rate of 6 percent per year on the total deposit for the delayed period.
Huge relief for home buyers in such cases
In case of non-delivery of flat within the deadline prescribed by commission, the builder will have to refund the entire amount with 10% interest.
In cases of delayed projects, builders often pay compensation as per the clause in agreement which ranges from Rs 5-10 per sq feet per month. The sum is negligible in view of the large investments by home buyers.