{"id":286981,"date":"2023-03-15T18:00:10","date_gmt":"2023-03-15T12:30:10","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=286981"},"modified":"2023-03-15T14:52:50","modified_gmt":"2023-03-15T09:22:50","slug":"ncdrc-slams-compensation-on-builder-not-giving-possession-legal-research-legal-news-updates","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2023\/03\/15\/ncdrc-slams-compensation-on-builder-not-giving-possession-legal-research-legal-news-updates\/","title":{"rendered":"Builder not giving possession on time; NCDRC slams with compensation for delay in delivery of possession"},"content":{"rendered":"<p><script type=\"text\/javascript\">\n\tdocument.title = 'NCDRC slams compensation on builder not giving possession | SCC Blog'\n\tdocument.querySelector('meta[name=\"description\"]').setAttribute(\"content\", \"NCDRC slammed builder not giving possession on time with compensation and directions on bringing transparency in terms of builder agreement.\");\n<\/script><\/p>\n<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\"><b>National Consumer Disputes Redressal Commission:<\/b> In a batch of Consumer Complaints for delay in delivery of possession and difference of promises in brochure and agreement with the buyers, the Commission presided by Ram Surat Ram Maurya and <b>Dr. Inderjit Singh, Member*<\/b> directed the builder to compensate complainants for delay in possession, failure in providing promised facilities and litigation costs.<\/p>\n<p style=\"margin-bottom: 3%;\">The facts of the lead matter reveal that the complainant bought a flat in the project originally allotted to another. The amount of consideration for the unit, including IFMS Security, Club Membership and contingency final charges was Rs. 55,41,184. However, the complainants being threatened of cancellation of allotment were forced to pay Rs. 72,25,417 included stamp duty and registration, by levying unconscionable, unsubstantiated and illegal charges in the name of electricity connection charges, excess area charges, BOCW Cess, IFMS maintenance security, besides delaying handing over of the apartment by more than a year. The complainants also complained about the builder not providing the facilities and features promised, probably overcharging them for non-existent features.<\/p>\n<p style=\"margin-bottom: 3%;\">As against the objections raised by the opposing parties, the Commission clarified that NCDRC has jurisdiction under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-9000214226\">21<\/a> <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-9000214317\">Consumer Protection Act, 2019<\/a>, since the value exceeds Rs 1 crore. It further added that the cause of action is continuing since the builder failed to deliver possession of the unit to complainants till date.<\/p>\n<p style=\"margin-bottom: 3%;\">The Commission referred to <i>Pioneer Urban Land &amp; Infrastructure Ltd.<\/i> v. <i>Govindan Raghavan<\/i>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/6yvpmWJH\">(2019) 5 SCC 725<\/a> wherein, the Supreme Court rejected the finality of a contract where flat purchasers lack any option other than signing the dotted line on a contract framed by the builder, holding the same as unfair practice. The Commission placed reliance on <i>Arifur Rahman Khan<\/i> v. <i>DLF Southern Homes (P) Ltd.<\/i>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/3YPPdmXY\">(2020) 16 SCC 512<\/a> wherein it has been held that failure to comply with contractual obligations within contractually stipulated period amounts to deficiency in service for jurisdiction of consumer fora and clarified delay in possession for award of compensation beyond the rate stipulated by the consumer forums.<\/p>\n<p style=\"margin-bottom: 3%;\">The Commission directed the builder to pay compensation @6% p.a. on the amount paid by complainants, a lumpsum compensation of Rs. 1.00 lakh (per unit) for the facilities\/ features promised and not provided, pay a sum of Rs. 25,000\/- as cost of litigation, disclose the details in a transparent manner, wrapping the payments mentioned within 3 months.<\/p>\n<p>The Commission dealt with several pointers through the present order as mentioned below:<\/p>\n<ul>\n<li>\n<p>Regarding compensation for delay in possession, the Commission held the subsequent allottees entitled to count the committed period of possession and delay compensation as applicable to original allottees.<\/p>\n<\/li>\n<li>\n<p>For refund of Club Membership Charges, the cost of such services is excluded from the agreement, hence, the Commission did not hold the complainant entitled to any refund on account of club membership charges.<\/p>\n<\/li>\n<li>\n<p>Return of contingency fund deposit has been denied by the Commission, however, the builder has been directed to disclose the purpose for which such fund has been used or will be used in future.<\/p>\n<\/li>\n<li>\n<p>Regarding refund of excessive electricity charges, the Commission directed the builder to declare\/disclose details of amount collected, and broad item-wise amount spent out of same and if any balance is still left, how it proposes to use the same, and how the rate of Rs.100\/- per sq. ft. to each unit has been worked out.<\/p>\n<\/li>\n<li>\n<p>Refund of IFMS has been denied by the Commission since levy @ Rs.50\/- per sq.ft. Is specifically mentioned in the buyer&#8217;s agreement. The Commission directed builder to transfer the said funr to LCA since it is now maintaining the common areas and facilities.<\/p>\n<\/li>\n<li>\n<p>On refund of Administration charges, the Commission directed the builder to declare\/disclose in a transparent manner as to how much and in what manner funds collected under such heads have been utilized, since the agreement does not envisage payment of any administration charges.<\/p>\n<\/li>\n<li>\n<p>On refund of illegally charged amount on account excess area charges, the Commission found the complainant&#8217;s concern genuine and directed the builder to disclose\/declare regarding covered area and common area in a transparent manner.<\/p>\n<\/li>\n<li>\n<p>Regarding refund of illegally charged amount on account of BOCW Welfare Cess, the Commission observed that the agreement does not mention anything specifically Building &amp; other Construction Workers Welfare Cess (BOCWW Cess) payable by complainants, and directed the builder to disclose the total amount collected under this head, amount already paid\/deposited to\/with concerned government authority, further amount payable, if any, balance available if any, and how it proposes to use the balance.<\/p>\n<\/li>\n<li>\n<p>For unauthorized changes in the specifications, the Commission held differences in brochures and agreements as deficiency in service and unfair trade practice, making the developer liable.<\/p>\n<\/li>\n<li>\n<p>Delay in handing over the basement parking and reduced number of visitor parking slots, the Commission denied any specific relief due to lack of documents on record.<\/p>\n<\/li>\n<li>\n<p>With respect to compensation for nonexistent and deficient common area facilities, the Commission denied specific relief.<\/p>\n<\/li>\n<li>\n<p>Compensation for exposing complainants to extreme risk and hazard on account of poor mechanical electrical and plumbing works was also denied due to lack of documents on record.<\/p>\n<\/li>\n<li>\n<p style=\"margin-bottom: 3%;\">For returning satisfaction note, no objection note, handing over\/taking over note and other blank papers which the complainants were forced to sign before registration of apartments, the Commission did not grant any relief holding that the complainants failed to prove their case.<\/p>\n<\/li>\n<\/ul>\n<p style=\"margin-bottom: 3%;\">[<span style=\"font-weight: bold; color: #632423;\">Anil Rawat v. Clarion Properties Ltd., Consumer Case No. 1512 of 2017, decided on 6-03-2023<\/span>]<\/p>\n<p style=\"text-indent: 18pt;\"><strong><span style=\"color: #000080;\">*Order authored by: Dr. Inderjit Singh.<\/span><\/strong><\/p>\n<hr\/>\n<p>Advocates who appeared in this case :<\/p>\n<p style=\"margin-left: 18pt;\">For Complainants: Advocate Bhupender Pratap Singh, Advocate Ranjita Pal;<\/p>\n<p style=\"margin-left: 18pt;\">For Opposite Parties: Advocate Kaadambari, Advocate Ayushi, Advocate Sahil.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p><i>In another case of delayed possession of flats by builder in Gurugram, NCDRC directed the builder to compensate the homebuyers for delay and differences of brochure and builder homebuyer agreement.<\/i><\/p>\n","protected":false},"author":67513,"featured_media":286977,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[51864,55984,55983,36518,3095],"class_list":["post-286981","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-builder-agreement","tag-builder-homebuyer-agreement","tag-builder-possession","tag-consumer-disputes","tag-NCDRC"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Builder not giving possession on time; 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Jain (Presiding Member), while disposing of a complaint, directed the builder to refund the amount paid by consumer along with compensation due to failure in offering the possession of the residential apartment with respect to the agreed agreement between the parties. The\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":256639,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/11\/02\/law-on-builder-buyer-dispute\/","url_meta":{"origin":286981,"position":1},"title":"Law on Builder-Buyer Dispute | 9-years delay in delivering possession of apartment: Read NCDRC\u2019s decision on refund and interest","author":"Bhumika Indulia","date":"November 2, 2021","format":false,"excerpt":"Can Buyer be asked to wait indefinitely for possession of flat even after 9-years of delay?","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":256879,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/11\/09\/law-on-force-majeure\/","url_meta":{"origin":286981,"position":2},"title":"Law on Force Majeure | Builder taking shelter of \u201cForce Majeure\u201d clause for delay in handing over possession: Justified or not? Read what NCDRC says","author":"Bhumika Indulia","date":"November 9, 2021","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC): Expressing that the builder cannot take shelter of \u201cForce Majeure\u201d while delay in handing over possession Coram of C. Viswanath (Presiding Member) and Ram Surat Ram Maurya (Member) directed for a refund of buyers\u2019 amount along with interest. Facts in a Nutshell Complainants had\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":237728,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/10\/20\/ncdrc-builder-has-to-mention-the-date-of-delivery-of-possession-in-agreement-homebuyer-cannot-be-made-to-wait-for-possession-indefinietly\/","url_meta":{"origin":286981,"position":3},"title":"NCDRC | Builder has to mention the date of delivery of possession in agreement &#038; failure to do so will be read against builder; Homebuyer cannot be made to wait for possession indefinitely","author":"Bhumika Indulia","date":"October 20, 2020","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC):\u00a0\u00a0A Division Bench of Dr S.M. Kantikar (Presiding Member) and Dinesh Singh (Member) held that, a homebuyer cannot be made to wait indefinitely for possession. The instant appeal was preferred by the appellant under Section 19 of the Consumer Protection Act, 1986 against the Order\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":224458,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/01\/23\/ncdrc-paltry-compensation-not-an-adequate-redressal-to-allottee-as-it-creates-no-pressure-created-on-developer-to-complete-construction-on-time\/","url_meta":{"origin":286981,"position":4},"title":"NCDRC | Paltry compensation not an adequate redressal to allottee as it creates no pressure created on Developer to complete construction on time\u00a0","author":"Bhumika Indulia","date":"January 23, 2020","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC):\u00a0Justice V.K. Jain (Presiding Member), while disposing of a complaint, directed the builder to provide compensation in the form of simple interest at 7 percent per annum from the expected date for delivery of possession till the date on which the possession was actually offered\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":233132,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/07\/30\/ncdrc-developer-to-refund-principal-amount-of-3-4-crores-along-with-9-interest-in-view-of-4-years-delay-of-giving-possession-of-apartment\/","url_meta":{"origin":286981,"position":5},"title":"NCDRC | Developer to refund principal amount of 3.4 Crores along with 9% interest in view of 4 years delay of giving apartment&#8217;s possession","author":"Bhumika Indulia","date":"July 30, 2020","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC):\u00a0A Division bench of Justice R.K. Agrawal (President) and S.M. Kanitkar (Member) directed the developer to refund the principal amount along with compensation in the form of 9% p.a. interest and 25,000 as litigation costs in view of a 4-year delay in giving the possession\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/286981","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67513"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=286981"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/286981\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/286977"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=286981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=286981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=286981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}