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Home buyers entitled to full refund if flat not given on time: Court

The judgement of the state consumer commission has come in the case of Nitika Verma and Nitin Verma against ATS Estates Private Limited. The commission allowed the complaint and dismissed the application of the builder via a combined order.

TNN|
Nov 13, 2019, 12.03 PM IST
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According to the buyer agreement, the builder was to hand over the possession of the apartment within three years of the booking.

(This story originally appeared in on Nov 13, 2019)
Chandigarh: In a consumer complaint filed by a Chandigarh-based couple, the state consumer commission, Punjab, held that in case the builder of an apartment fails to give possession on time, the consumers are under no obligation to accept possession at a belated stage and can seek refund of the entire amount paid along with reasonable compensation in the form of interest.

The judgement of the commission has come in the case of Nitika Verma and Nitin Verma against ATS Estates Private Limited.

The complainants, who are husband and wife, had booked an apartment in the project known as 'ATS Golf Meadows Lifestyle' located at Derabassi on September 6, 2014, for a total price of Rs 61 lakh. According to the buyer agreement, the builder was to hand over the possession of the apartment within three years of the booking with a grace period of six months.

The complainants had already been paid Rs 53.70 lakh against the total sale price and the remaining amount was to be paid at the time of delivery of possession. However, the builder defaulted in delivering the possession within the promised time and was only offering a compensation of Rs 5 per square feet per month by relying on the buyer agreement.

The complainants approached the state commission through their lawyer on February 5, 2019.

The builder then filed an application for dismissal of complaint on the grounds that after the enactment of Real Estate (Regulation and Development) Act (RERA), 2016, the consumer commission has seized to have jurisdiction to entertain the complaint.

The commission, while allowing the complaint and dismissing the application of the builder via a combined order, held that the builder is required to refund the payment already made, ie, Rs 53.70 lakh along with an interest at 12% per annum from the date of deposit. Moreover, the builder has to pay a compensation of Rs 65,000 on account of mental agony and litigation expenses.

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