Real estate developer told to refund payment to buyer with 9% interest

The District Consumer Disputes Redressal Commission has come down heavily on real estate developer Nitishree Infrastructure Limited for keeping a homebuyer waiting for over 16 years without delivering possession of the promised flat.

The commission also ordered the company to refund the amount deposited by the buyer towards the flat along with nine per cent annual interest, compensation and litigation expenses, holding the developer guilty of deficiency in service in its “Shourya Greens” housing project in Jalandhar.

The commission observed that despite collecting money from the buyer in 2006 and promising possession by December 2010, the builder failed to complete the flat or basic infrastructure at the project site, leaving the buyer waiting for years without any relief.

The case was filed by 71-year-old Baldev Singh of Hoshiarpur district, who had booked a ground floor flat measuring 1,545 sqft in the Shourya Greens project located on the Amritsar bypass road. The project was being developed on 16.52 acres allotted by the Jalandhar Improvement Trust, which had granted development rights to the private builder for constructing a group housing project.

According to the complaint, Singh booked the flat in February 2006 for Rs 22.86 lakh and opted for a down payment plan, paying Rs 7.32 lakh to the company. Under the buyer’s agreement executed between the parties, the developer was required to hand over the possession of flat by December 2010, after obtaining the completion certificate from the Jalandhar Improvement Trust.

However, Singh noted that the project saw little progress for years and the site remained largely undeveloped. He further stated that the developer failed to provide even the basic promised amenities such as proper roads, electricity infrastructure, water supply and sewerage systems.

During the proceedings, the developer claimed that the construction had been completed and that the flat was ready for possession, alleging that the buyer had failed to clear outstanding dues of Rs 14.8 lakh.

To verify the claims, the commission appointed a local commissioner to inspect the site. The inspection report revealed that the flat was still incomplete and not fit for habitation with essential installations such as sewerage systems, electricity wiring, sanitation fittings, floor tiles, approach road and parking area, yet to be completed.

The commission also noted that the developer failed to produce the mandatory completion or occupancy certificate issued by the competent authority which is required before handing over possession of residential units.

Observing that a consumer cannot be made to wait indefinitely for possession of a house, the commission held the builder responsible for the prolonged delay and ruled that the buyer was entitled to a refund.

The commission, chaired by Harveen Bhardwaj and members Jyotsna and Jaswant Singh Dhillon ordered the company to refund the deposited amount of Rs 7.32 lakh along with interest at the rate of nine per cent per annum from the dates of payment. It also directed the builder to pay Rs 30,000 as compensation for mental harassment and Rs 10,000 towards litigation expenses.

The developer was directed to comply with the order within 45 days of receiving the copy of the judgment.