Shubhkamna Buildwell & Estates Pvt. Ltd had launched the housing project for retired and serving government employees in 2014 and promised to deliver over 800 flats within three years.
The apex consumer commission has ordered a real estate firm to refund the amount paid by homebuyers along with interest at the rate of 12 percent and Rs 50,000 as cost of litigation after it failed to complete a project.
“Allottees cannot be compelled to wait any more, particularly when the construction has not made any substantial progress and there is no prospect of it being completed in the near future,” the order passed by National Consumer Disputes Redressal Commission said.
Shubhkamna Buildwell & Estates Pvt. Ltd had launched the housing project for retired and serving government employees in 2014 and promised to deliver over 800 flats within three years. The company had signed an MoU in 2013 with Government and Public Sector Employees' Welfare Housing Organisation for construction of the units in Sector- 12, Greater Noida West.
After the real estate company failed to deliver the units, eight buyers moved court to seek refund, stating that there was no worthwhile construction on the site till date and the builders seem to have abandoned the project and that there was no prospect of the project being completed.
"This is a class action suit filed by eight homebuyers and will benefit all buyers in the project who have similar grievances," said Aditya Parolia, advocate with PSP Legal.
In a similar order passed in March last year, the apex consumer court had ordered Unnati Fortune Group to refund the amount paid by homebuyers alongwith an interest of 9 percent per annum as there was no progress in construction of the project.
Last month, the NCDRC for the first time defined what constitutes "inordinate delay" and held that consumers can seek refund if the possession is delayed by over one year beyond the date of delivery promised by the builder. NCDRC had also held that buyers can seek refund even if RERA has taken over the project.
The consumer court passed the order on a plea by Shalabh Nigam, who bought a flat in 2012 in the Greenopolis project located in Gurugram, being constructed by Orris Infrastructure and 3C company.
In its December 2018 order, the apex consumer commission had ruled that a real estate developer cannot cite excuses such as delay in approvals by authorities, issues of land acquisition to justify late delivery of projects. The bench had directed a subsidiary of real estate major DLF to hand over possession to 16 homebuyers who have booked units in Panchkula in Haryana.
vandana.ramnani@nw18.com
