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1 Year Delay In Possession? Ask For A Refund From Builders!

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1 Year Delay In Possession? Ask For A Refund From Builders!

National Consumer Disputes Redressal Commission (NCDRC) passes an order which states that any delay exceeding the time of one year is enough for homebuyers to make a refund claim from builders

Previously, despite hassled homebuyers being eligible for a refund for delayed delivery of their homes, there was no set time to claim it. However, thanks to an order passed by the National Consumer Disputes Redressal Commission (NCDRC), any delay exceeding the time of one year is enough for homebuyers to make a refund claim from builders.

In the past, legal bodies like the Supreme Court and consumer courts have maintained that homebuyers cannot be made to wait indefinitely. However, the wait limit was never specified.

NCDRC’s panel member Prem Narain said, “It is now established that allottees have the right to ask for a refund if possession is inordinately delayed, particularly beyond one year.”

The landmark verdict was ordered due to a case filed by Delhi resident Shalabh Nigam. Back in 2012, Nigam had booked an apartment in the luxury housing project, Greenopolis. Located in Gurgaon, its developers were Orris Infrastructure and 3C.

Nigam had paid approximately Rs 90 lakhs out of the total amount of Rs 1 crore. The agreement had stated that the possession of the flat would be given before the end of 2015. It also had a grace period of six months from the date of allotment. When the builders failed to complete the project, Nigam approached the commission through advocate Aditya Parolia. He wanted one of the two things a refund or the apartment’s time-bound possession.

Since the buyer was keen to be given the flat’s possession, NCDRC ordered the builder to complete the construction and hand over the flat, complete in all respects as per the agreement, by end of September 2019 with the occupancy certificate.

Despite giving Nigam the possession, the builder was also ordered to pay him a monetary compensation at the rate of 6 percent per year on the total deposit for the delayed period.  

In case of non-delivery of the flat within the deadline prescribed by the commission, NCDRC said the builder will have to refund the entire amount with 10 percent interest.

 

Source: TOI

ALSO READ: Homebuyer To Get Refund With A Flat From Prarthana Enterprises

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