Law on Builder-Buyer Dispute | 9-years delay in delivering possession of apartment: Read NCDRC’s decision on refund and interest

Can Buyer be asked to wait indefinitely for possession of flat even after 9-years of delay?

National Consumer Disputes Redressal Commission

National Consumer Disputes Redressal Commission (NCDRC): In a builder-buyer dispute, Coram of Justice R.K. Agrawal (President) and Dr S.M. Kantikar (Member) noting the 9 years delay in delivery of possession of the apartment directed refund to the buyer.

Instant complaint was filed under Section 21 of the Consumer Protection Act, 1986 against Wave Mega City Centre (P) Limited.

Factual Background

Complainants lured by the eye-catching advertisements and assurances given by the representatives of the Developer, applied for the allotment of an apartment. Vide the allotment letter, complainants were allotted an apartment.

An allottee arrangement was also executed between the parties. As per the Agreement, the possession of the apartment was to be delivered within 48 months from the date of the execution of the agreement by July 2016 with a grace period of 6 months.

Complainants kept following up with the Developer regarding the date of possession by visiting their office, but the Developer gave false assurances to the Complainants about the delivery of possession.

Complainants alleged that despite collecting a hefty amount from the complainants, the developer has neither offered the possession of the apartment to the complainants till date nor has refunded the amount collected from them.

Analysis, Law and Decision

Commission stated that it cannot ask the complainant to wait indefinitely for possession of the Flat, as the construction was yet to be completed even after almost 9 years from the date of booking.

Therefore, Coram opined that complainants were entitled to the refund of the amount with reasonable interest.

Commission partly allowed the complaint with a direction to the Developer to refund the entire deposited amount with interest in the form of compensation @ 9% per annum. [Mili Jain v. Wave City Centre Pvt. Ltd., Consumer Case No. 3304 of 2017, decided on 29-10-2021]


Advocates before the Commission:

For the Complainants: Mr Jalaj Agarwal, Advocate

For the OP: Ms Shreya Nair, Advocate

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