NEW DELHI: In a major decision affecting the real estate sector, the Supreme Court on Monday ruled that people who have booked flats in a housing project can move a consumer forum against builders seeking damages for deficiency in service and registration of the project under the Real Estate (Regulation and Development) Act, 2016, will not bar such action,
Ten people had moved the National Consumer Disputes Redressal Commission (NCDRC) against Imperia Structures Ltd, which had floated a housing project in Gurgaon, in 2011 and had failed to keep the promise of delivering the flats. The complainants had paid the major portion of the aggregate price of Rs 76 lakh per flat.
The NCDRC directed the builder to pay back the deposited money with 9% interest. The builder challenged the NCDRC order on the ground that since the project was registered under Rera, the homebuyers could move the authorities under Rera and not invoke the jurisdiction of a forum under the Consumer Protection (CP) Act.