Order Date: Not Mentioned
Order Name: Amarjeet Singh Gadhok vs. Raheja Developers
Case No.: C.C. No. 75/2022
The National Consumer Disputes Redressal Commission (NCDRC), led by Dr. Inder Jit Singh, has determined that Raheja Developers is responsible for a service deficiency. The commission ruled that the developer must compensate for delays at an annual rate of 6%, in addition to any compensation already agreed upon in the Builder-Buyer Agreement.
### Brief Facts of the Case
Eleven complainants filed a joint complaint after booking units in the “Raheja’s Shilas” project in Gurgaon. They were influenced by advertisements and promises made by Raheja Developers. After paying significant amounts towards their units, they received allotment letters and signed Flat Buyer’s Agreements, which stipulated that possession would be given within 24 months, with an additional 6-month grace period. When the developer failed to deliver on time, the complainants sought redress from the National Commission. They requested 12% annual interest for the delay until possession, ₹5,00,000 for mental agony, and ₹1,00,000 for litigation costs.
### Developer’s Contentions
Raheja Developers argued that the complainants were aware that no compensation would be provided for delays due to infrastructure or possession issues, as stated in the application form and agreement. They attributed the delays to government policies, infrastructure development, and legal constraints. The developer asserted that the contract terms were fair and should be resolved in a civil court, as no negligence was proven under the Consumer Protection Act. Additionally, they argued that the complaint was time-barred and that the complainants were not consumers since they already owned other properties.
### Observations by the National Commission
The National Commission noted that the primary request from the complainants was possession, with a refund as an alternative. Raheja Developers assured that they could obtain the Occupancy Certificate (OC) within five months and hand over possession, agreeing to pay delay compensation at 6% per annum. If they failed to deliver, they would refund the principal amount with 9% interest. The complainants cited past cases to argue for higher delay compensation, but the developer referenced another case to support a 6% rate.
Ultimately, the National Commission directed Raheja Developers to secure a valid OC within four months and hand over possession within six months. They must also pay delay compensation at 6% per annum and cover any previously agreed compensation. Additionally, the developer is required to pay ₹25,000 towards litigation costs.
### Key Takeaway
For consumers, this judgment underscores the importance of holding developers accountable for delays. It also highlights that legal recourse is available if developers do not adhere to agreed timelines.
