Order Name: Monika Bansal & Ors. v/s Total Environment Building Systems Pvt. Ltd.
Here’s an important ruling that you need to be aware of if you’re planning on buying property. The National Consumer Disputes Redressal Commission has recently reinforced that it’s not fair to keep buyers waiting indefinitely for possession of their property. This came to light in a case where the commission, led by Mr. Ram Surat Ram Maurya and Mr. Bharatkumar Pandya, highlighted that unnecessary delays by a builder in handing over flats is considered a lapse in service.
The case in point involves Monika Bansal who had filed a complaint against the builder, Total Environment Building Systems Pvt. Ltd., for not delivering her unit in the project “Windmills of Your Mind” on time. Monika had booked this unit with a plan to settle there after her retirement and had paid approximately 90% of the total cost, amounting to Rs. 6,86,19,422. Despite this, the builder failed to hand over the unit by the agreed date of July 30, 2016. Furthermore, they allegedly reduced the area of the unit without informing Monika, while still charging the same amount. This led Monika to approach the National Consumer Commission demanding a refund along with interest and compensation.
Refuting the allegations, the builder held that any disputes should have been first discussed by a Real Estate Association in Bangalore and then through arbitration according to the agreement. They claimed to have obtained the Occupancy Certificate on time, which they argued showed the unit was ready. They blamed the delay on late payments and customization requests by Monika, as well as shortages of materials and labor.
However, the commission pointed out that the builder had obtained the Occupancy Certificate in January 2018 but only offered possession of the unit to Monika in July 2020. They noted that the date of receiving the certificate is meaningless to the buyer if the unit isn’t handed over soon after. As such, they found that the builder was at fault for an unreasonable delay of over 3 years in delivering the unit.
Supporting their decision, the commission referred to verdicts from the Supreme Court cases of Bangalore Development Authority Vs. Syndicate Bank (2007) and Kolkata West International City Pvt. Ltd. Vs. Devasis Rudra 2019. Both cases uphold that buyers should not be put through endless delays in obtaining possession of their properties.
The end result: the builder has been instructed to refund the entire amount Monika had paid, along with a 9% annual interest, within two months from the date of the judgment.
Takeaway: This judgment underscores the importance of timely delivery in real estate transactions and reaffirms that buyers have the right to seek compensation if left waiting indefinitely. It’s a reminder to all builders to stick to their agreed timelines and to buyers to know their rights in such situations.
