In a recent verdict, NCDRC clarified that homebuyers can't be forced to take possession in an incomplete project. It is completely a choice of a buyer whether to take possession of a unit or seek a refund of the money along with compensation in the form of interest in a delayed project.


The National Consumer Disputes Redressal Commission (NCDRC) has recently passed an order stating that a Home Buyer cannot be coerced to accept possession of his/her delayed Flat at whatever time it is offered by the developer. And, a developer cannot refuse to pay back the amount on the argument that flat is ready.

Noida, 20th September 2019: The National Consumer Disputes Redressal Commission (NCDRC) has directed a real estate developer Golden Peacock Residency Pvt. Ltd. to refund Rs. 4.12 cr. with interest to the homebuyer and has passed an order that homebuyers cannot be made to wait for the possession of the flat for an indefinite period.

Under Section 21 (a) (i) of the Consumer Protection Act, 1986 ('the Act'), the complaint was filed by Alok Kumar against the developer Golden Peacock Residency Pvt. Ltd. and the construction company Homestead Infrastructure Development Pvt. Ltd.

Lured by an advertisement - "Michael Schumacher World Tower" in sector 109, Gurgaon- A Luxury Residential Development Project, Mr. Alok Kumar booked a flat in the development in 2012. He submitted that he took a home loan assistance of INR 2,61,28,926/- @ 10.10% per annum to make the payment.

By the year 2015, he paid a total amount of INR 4,12,98,926/-. The flat was expected to be delivered within 36 months with an additional grace period of 6 months from the date of execution of the Flat Buyer’s Agreement.

Alok Kumar observed that construction work of the development had stopped since 2015. Still, the developer assured Alok Kumar about the timely possession of the apartment. By 2018, the developer failed to hand over the apartment, instead, the buyer found the project site to be locked.

About more than 6 months had already passed ever since the extended date of possession. Further, the developer has not specified the exact date of project delivery. Getting no proper response from the construction company and the developer, the compliant approached the NCDRC in July 2018.

After going through a mental suffering and monetary loss, Alok Kumar complained that he seeks a refund of money paid for buying the flat. On 24th July 2018, the complaint was admitted by NCDRC.

Till the date of realization, the NCDRC Bench has directed the builder to refund INR 4,12,98,926/- with interest to the compliant Mr. Alok Kumar. Moreover, the developer has to pay a fine of INR 25,000/-, the bench added. For Real Estate News Noida NCR keep checking out this invaluable spot.

There have been many cases of such kind where the builder has failed to fulfill its promise and the homebuyers had filed a complaint seeking a refund. The first case filed before the Apex Court bench wherein a builder had sold a villa in Gurugram to Shrihari Gokhale in July 2012. As per the agreement, the possession date of the villa was 31st December 2014, but there was a total failure on the part of the builder to complete the development.

Seeking a refund of Rs 13.24 crore, the home buyer filed a complaint with the NCDRC in 2016.  NCDRC directed the builder to refund the principal amount of INR 8.14 crore, with 10% annual interest to the home buyer.

In retaliation, the developer challenged the NCDRC order in the Supreme Court, upon which the apex court reinstated the NCDRC order to pay back the principal amount of INR 8.14 crore, with 10% annual interest to the home buyer.

A Delhi-based developer Pioneer Urban Land and Infrastructure has been asked by the bench of justice V K Jain to refund the amount of INR 4.43 crore to the homebuyer.

Though, the developer has completed the flat, got occupation certificate from concerned authority about 15 days prior the homebuyer filed a complaint, the NCDRC ordered Delhi-based developer to pay back the money as there was a delay of more than 2 years in project delivery.

The judgment said, "More than two years and four months from the stipulated date had already expired by the time the Occupancy Certificate was obtained. Therefore, the Complainants are entitled to refund of the amount paid by them to the opposite party along with compensation in the form of interest".


This Property News Noida is making sure that these orders from reputed institutions are establishing home buyers trust in the system. Earlier, developers have been into the practice of delaying the project for an indefinite time and thereby forcing buyers into taking possession of the flat without giving them an option to exit.

Now, the buyers do have the option to exit the project and the developers have to refund the amount along with interest.