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Home Buyers Can’t Wait Indefinitely For Possession, Consumer Commission Says

NCDRC also imposed a cost of Rs 25,000 on Adel Landmarks Ltd., which would be given to five home buyers.

Tower cranes operate in a residential building construction site  in Noida, Uttar Pradesh, India. (Photographer: Prashanth Vishwanathan/Bloomberg)
Tower cranes operate in a residential building construction site in Noida, Uttar Pradesh, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

Home buyers cannot be made to wait indefinitely for possession of flats booked by them, the apex consumer commission has said as it asked a private builder to refund the amount paid by its customers.

The National Consumer Disputes Redressal Commission noted that possession was not given even after five years and asked New Delhi-based Adel Landmarks Ltd. to refund over Rs 66 lakh to five customers who were allotted flats in their project in Gurgaon in 2012.

“The firm has chosen not to come forward to tell this commission as to why it has failed to deliver possession to them, and by which date it expects to deliver the possession. The buyers, in my opinion, are entitled to refund of the amount paid by them to the opposite party (firm), along with appropriate compensation,” the bench headed by its presiding member Justice VK Jain said.

The commission also imposed a cost of Rs 25,000 on the builder which would be given to the five home buyers – Chirag Grover, Kamalpreet Singh Sethi, Ramesh Kumar, Raj Kumar and Dharmesh Jain.

“Even if I take five years from the initial allotment for delivery of the possession, the facts remain that the firm has failed to complete the construction and offer possession of the flat,” the judge said.

“The persons cannot be made to wait indefinitely for the possession of the flats allotted to them, and they are entitled to seek the refund of the amount paid by them, along with compensation,” the judge added.

According to the complaint filed by the home buyers, they were allotted flats in the Gurgaon project of the firm in 2012. However, the project was scrapped, and the firm later allotted them flats in another project with an extended delivery date.

The commission noted that the firm failed even to finish the alternative project within a reasonable time frame.