The National Consumer Disputes Redressal Commission (NCDRC) has ordered the developers of Greenopolis housing project in Sector 89, Gurugram, to refund around ₹13 crore to 15 homebuyers for failing to deliver houses despite the bookings being made in 2012 and possession being due in 2015-16.
The Commission also ordered the developers to complete the construction work and handover the flats to another 10 homebuyers before September 30 this year. It noted that the homebuyers had put in their money on the joint project of Orris Infrastructure Pvt. Ltd. and Three C Shelters Pvt. Ltd., for which the possession was to be given in 2016. “However, the construction is not yet complete,” it said.
Advocate Aditya Parolia, representing 25 homebuyers, argued that his clients have individually invested their hard-earned money in the range of ₹72 lakh to over ₹1 crore to book an apartment in the project.
Mr. Parolia said that the allotment letters was signed between the homebuyers and the developers in 2012, but the possession of the apartments have not been made till date. He said that in many cases, the homebuyers have taken home loans from banks for which they are paying monthly EMIs.
One of the contentions raised by the developers was that some of the homebuyers breached the provision of the Apartment Buyer Agreement as they stopped paying instalments. The developers argued that since these homebuyers are clear defaulters, no relief can be granted to them.
If the allotment is cancelled and refund is ordered, then the developers are entitled to forfeit 10% of the consideration amount as earnest money as per the agreed clause, the developers said.
“The construction of the building depends upon the timely payment by the buyers and if a buyer does not pay instalment on time, the buyer becomes defaulter in the performance of his part/obligation,” the developers argued.
The Commission, however, rejected this argument noting that, “in the present cases, instalments have been paid up to reasonable limit and the payment was stopped later on as there was no progress in the construction”.
“Therefore, it cannot be said that the complainants [homebuyers] breached the agreement first and they are not entitled to any relief in the light of Section 54 and 55 of The Indian Contract Act, 1872,” the Commission said.
The Commission also clarified that in cases where the developers has been ordered to complete the construction work and handover the physical possession of the flats, if the possession is not delivered till September 30, 2020, the homebuyers are at liberty to take refund of the total deposited amount along with interest from the date of respective deposits till actual payment.