Godrej Properties Asked To Refund Rs1.07 Crore with Interest to Home-buyer

Moneylife Digital Team 07 April 2023

National consumer dispute redressal commission (NCDRC) has ordered New Delhi-based Godrej Properties Ltd to refund Rs1.07 crore to the home-buyer Sanjay Vijay as the developer failed to hand over the possession of the apartment within the stipulated time.

In the order, the bench of justice Ram Surat Ram Maurya and Dr Inder Jit Singh says, "In the instant case, even after a gap of more than six years, the developer company has not been able to resolve the issues relating to change in nomenclature of towers, and exchange of land for revenue raasta with the gram panchayat due to which it could not register the conveyance deed in favour of complainants free from defects; leading to an inordinate delay of more than eight years from the committed date as per the agreement in handing over the possession of the flat, which amounts to deficiency in service on the part of the company. The complainants cannot be made to wait for an indefinite time. Hence, the complainants in the present circumstances have a legitimate right to claim a refund along with fair delay compensation from the company."

Sanjay Vijay had entered into a buyer agreement for a re-sale apartment in the group housing project Godrej Frontier situated at Sector-80 in Gurugram. The total consideration for the apartment was Rs1.02 crore. He was asked to pay Rs1.07 crore, of which Rs4.5 lakh was the premium given to the former buyer.

As per the agreement, it was agreed that the apartment would be ready for occupation within 19 months with a grace period of six months. Even after the payment of the full amount and the completion of the grace period, the builder failed to deliver possession of the apartment.

Aggrieved by this, Sanjay Vijay filed a complaint against Godrej Properties.

During the hearing, the company accused that the home-buyer is not a consumer and had purchased the apartment for commercial gains. The builder stated that the occupation certificate was obtained on 16 October 2014 and the possession notice enclosed a demand of Rs4.46 lakh towards stamp duty, registration charges, and electric connection charges. The advance maintenance was sent to the buyer, but he did not adhere to it.

After the perusal of every contention and document, the Commission found some discrepancies in the arguments from Godrej Properties. It observed that even after a gap of more than six years, the developer has not been able to resolve the issues relating to changes in the nomenclature of towers. The Commission concluded that the inordinate delay of eight years could not be tolerated.

It then asked Godrej Properties to refund to the home-buyer Rs1.07 crore along with an interest of 9%pa (per annum) and a litigation cost of Rs25,000.

(Consumer Case No2432 of 2018 Date: 5 April 2018)

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