Thursday 15 May 2014

NCRDC orders Builder to pay 18% Interest for Delayed Possession

NCRDC orders Builder to pay 18% Interest for Delayed Possession

National Consumer Disputes Resolution Commission (NCRDC) has ordered Parasvnath Developers Ltd (OP) to refund the amounts paid by the customer / investor along with 18% interest from the date of deposit till its realisation. Further compensation @ Rs. 1,00,000/- per year, from 2007 onwards for harassment, mental agony, anguish, frustration, anger and sadness has been directed along with a sum of Rs.2,00,000/- towards costs of this case.

Points to Note:

1. As per a Clause of the Flat Buyer Agreement, it was agreed by the OP that in case of any delay, the OP shall pay to the complainants a compensation @ Rs.5/- per sq.ft., per month, for the period of delay. 

2. Reference to The Apex Court judgement in the case of K.A. Nagamani Vs. Karnataka Housing Board, Civil Appeal Nos. 6730-31 of 2012, decided on 19.09.2012 where in 18% interest was granted.

3. National Consumer Disputes Resolution Commission (NCRDC) has ordered OP to refund the amounts paid by the customer / investor along with 18% interest from the date of deposit till its realisation. Further compensation @ Rs. 1,00,000/- per year, from 2007 onwards for harassment, mental agony, anguish, frustration, anger and sadness has been directed along with a sum of Rs.2,00,000/- towards costs of this case.

4. Strong Remarks by NCRDC : "It must be borne in mind that there is a huge delay in handing over the possession of the premises in dispute, i.e., about four years. The OP has made attempt to feather its own nest i.e., to make profits for itself at the expense of others. The grant of Rs.2.00 lakhs or Rs.3.00 lakhs for such a huge delay will be unjust and unfair. The complainants .... and his wife are compelled to live in the house of their daughter. They do not have any independent house to live in. Their harassment and mental agony cannot be equated by payment of a few pea nuts. The OP has played fast and loose with the consumers"


Disclaimer: Above are personal interpretations. We do not accept any liability arising out of use of above information. Users are advised to apply their own thoughts and experience in above case.

Case Number
Consumer Complaint No. 144 of 2011

Case Title:
Subhash Chander Mahajan Vs Parasvnath Developers Ltd

Bench:

HON’BLE MR. JUSTICE J. M. MALIK, PRESIDING MEMBER

HON’BLE DR. S. M. KANTIKAR, MEMBER

Date of Judgement: 
05th May 2014

Full judgement / Order Link:

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