No Possession Even After One Year?, Flat Buyers Can Now Claim Refund
The Logical Indian Crew India
May 20th, 2019 / 11:21 AM
In a big relief to all homebuyers who haven’t got the possession of their flats, after the promised time, can now seek a refund from the builders.
The National Consumer Disputes Redressal Commission (NCDRC) has set a deadline of ‘one year’ beyond the promised time, after which a buyer can claim a refund and an addtional 10% interest.
The apex commission took the step on the back of increasing cases in delays of flat handover.
Previously, the Supreme Court had asked the builders to handover the possession to the buyer at the earliest, stating that homebuyers cannot be made wait incessantly to take ownership of the flat. However, no clear instructions were given on the timeline of the refund.
The NCDRC bench headed by Prem Narain, in its order, said, ‘It is now established that allottees have the right to ask for a refund if possession is inordinately delayed, particularly beyond one year”, reported The Times of India.
The court was hearing a plea by Salabh Nigam, a Delhi Resident who bought a flat in 2012 in the luxury housing project, Greenpolis, Gurgaon. Salabh had paid Rs 90 lac for the flat. According to the agreement, the flat was to be handed to Salabh within 36 months, along with a grace period of six months valid from the date of allotment.
After the builders failed to keep their promise, Salabh approached NCDRC, to get a refund or the possession of the flat. The court ordered the builders to finish the stalled project and hand over the flat by September of 2019. Apart from this, the commission also directed the builder to pay 6% interest on the deposited money as a compensation, for the delay.
Recently, the court also asked Unitech Limited to refund more than 1 Cr to a Delhi resident, after the company failed to hand over the possession of a flat for over two years. The court ordered Unitech to refund the entire amount within three months with an interest of 10%.
Written by : Debarghya Sil
Edited by : Shweta Kothari