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Relief for buyers: Non delivery in time will attract refund along with interest.

Courtesy/By: Saurav Tibrewal | 18 Oct 2017

The National Consumer forum, in a landmark decision has ruled that “If a real estate company is unable to hand over the possession within the stipulated time, the buyer cannot be made to wait indefinitely and is entitled to refund along with interest”

In the case filed by a Shalini Lanbah (Complainant) against Unitech (opposite party) a bench headed by Justice Ajit Bharioke ordered for a refund of about 60 lakh rupees thus setting the precedent. The complainant filed the consumer complaint against opposite party alleging non delivery of flat even after 8 years of the expiry of the stipulated time. In the year 2006 the complainant was approached by a sales representative of the opposite party to purchase a residential apartment, in 'Unitech Habitat' to be developed in Greater Noida, promising that the apartment would be ready in 36 months. Despite having payed about 90% of the total amount and waiting for more than 10 years the possession was not given thus leaving the buyer with no money & home. The “Unitech” in its defense stated that the delay in construction was due to circumstances “beyond their control” but the court was not satisfied with their arguments.

In the present time of the real estate market where incumbent builders are habitually failing to deliver on time, this decision comes as a big relief for the buyers.

Courtesy/By: Saurav Tibrewal | 18 Oct 2017