Order Name: Shraddha Sachan Versus Aura Buildwell Private Limited
Case No.: First Appeal No. 933 Of 2020
The National Consumer Disputes Redressal Commission (NCDRC) recently delivered a significant judgment involving a shop purchase at a commercial project in Greater Noida, Uttar Pradesh. The bench, led by AVM J. Rajendra (President), clarified that a buyer qualifies as a consumer if the purchase is intended for self-employment. This decision came after the builder failed to hand over possession of the shop on time, prompting the court to order a refund of Rs. 38,62,000 plus interest to the buyer.
Initially, the State Commission had dismissed the complainant’s case, arguing the shop was for commercial use, which excluded her from consumer protection under the Consumer Protection Act, 1986. The complainant, having booked a shop in the ‘Drive Mart’ project by Aura Buildwell Private Limited, had paid an initial sum of Rs. 11,95,000, totaling about Rs. 38,62,000 for the shop. An allotment agreement was signed on September 25, 2017, with a promise to complete the project in three years plus a six-month grace period.
When the builder failed to deliver the shop as promised, the complainant approached the State Commission seeking a refund and compensation for the inconvenience caused. The dismissal of her complaint by the State Commission led her to appeal to the NCDRC.
The NCDRC overturned the State Commission’s decision, recognizing the complainant’s intention to use the shop for self-employment, thus qualifying her as a consumer under the law. The Commission noted the financial distress caused by the builder’s delay and rejected the builder’s defense of external challenges, labeling it as negligence.
Ultimately, the NCDRC directed the builder to refund the full amount of Rs. 38,62,000 with an annual interest of 9% from the date of the initial payment until the refund is complete. Additionally, the builder was ordered to pay Rs. 25,000 as litigation costs to the complainant.
The takeaway from this judgment is clear: if you’re purchasing property for self-employment, you are protected as a consumer under the law. This decision reinforces the rights of consumers and holds builders accountable for their commitments.
