In a glimmer of hope for thousands of home buyers fighting in courts to get possession of their houses, 11 families in Gurugram have won a case for higher compensation against real estate developer Emaar MGF Land after a struggle of over two-and-a-half years.
In what could set a precedent, the National Consumer Disputes Redressal Commission (NCDRC), in a strongly worded order, said, “paltry compensation” might tempt builders to delay construction and divert the money collected from home buyers for other purposes.
‘Deliver flats by 2018’
The NCDRC has directed Emaar MGF Land to pay a higher interest rate of 8% per annum for the delay in giving possession of residential units in its Emerald Floors project in Gurugram to the 11 home buyers. The builder has also been ordered to complete the construction and deliver the flats by the end of 2018.
The delay in possession of homes has been the biggest concern for home buyers across India, especially in the Delhi- NCR region. Many home buyers have dragged builders to court for getting ownership of their houses as well as higher compensation.
Prominent real estate firms including Unitech, Supertech, Amrapali and Jaypee have come under the scanner, with the Supreme Court in some cases asking the builders to refund money to buyers for failing to hand over flats in time. However, many are still left in the lurch.
“We have been fighting this case for two-and-a-half years for fair compensation for the delay of our houses in Emaar’s Emerald Hills Project in Gurugram. This possession should have happened 2012-2013 onwards but has been delayed and most home owners have not got possession as on date,” Rahul Kumar, one of the complainants, said.
The buyers had booked the property in 2009-10 and the builder was supposed to give possession in 27 months.
Mr. Kumar added that they were the first lot out of the 1,600 families who booked residential units at Emerald Hills to have approached the NCDRC. “Many others have gone too,” he said, adding that this judgment set a precedent for the other buyers too.
The NCDRC said the compensation as per the builder-buyer agreement was a “unilateral and patently unfair term imposed by the builders upon the flat buyers”.
An official spokesperson of Emaar MGF said: “We will examine the order and decide the next course of action once the same is received.”
Emaar MGF has also to pay ₹25,000 as the cost of litigation to each home buyer within three months.