NCDRC asks builder to refund money + interest @ 18%; holds agreement terms as unfair

12 Responses

  1. sanjay says:

    great judgement

  2. Sanjiv says:

    Buyer in case of refund is loosing price increase and the agreement compensation between builder and buyer. As time delay above 5 years should be given refund @18% quarterly compounded.

  3. Chitvan singhal says:

    On a Google search I have come across atleast 2 saurabh jains. Plz can anyone give Mr. Saurabh jain’s contact no. or atleast his office address?

  4. Very useful order. We are in similar circumstances and this order helps a lot.

  5. Chetan Aggarwal says:

    Another important judgement from NCDRC
    National Consumer commission judgment Case numbers CC/142/2012, CC/158/2014 and CC/356/2014

    Background of cases

    17 buyers filled three cases in NCDRC for fraudulent practices adopted by M/S MVL Limited in their project MVL Coral, Bhiwadi, Rajasthan . M/s MVL Limited floated a scheme in the year 2006 and aggressively marketed the said project promising high living luxury apartments, specially designed Swimming Pool, 24 hour power back up,
    Modular Kitchen, Covered Car Parking, Garden, Play Area, Security Club house, Rain Water Harvesting, Wifi Internet, Gymnasium etc. The project was planned with five towers namely Avenue-1,2,3,4 and 5. Out of 5 towers, only tower no. 5 has been constructed at site as per approved layout plan. The numbering and layout plans of all other towers were changed for unprecedented gains by the builder. 3 complainants had booked in tower-5 and all others in other towers. MVL Limited could not obtain mandatory occupancy certificate for the said project.

    Court Orders

    In its order, the NCDRC on 7-12-2015 said 3 buyers of tower-5 will take possession. MVL Limited is directed to furnish the occupation certificate, within 9 months from date of orders, as agreed, otherwise, it will carry additional penalty in the sum of Rs.2,000/ per day for each of the complainants, after the expiry of said 9 months. There was a delay in providing possession in the premises in dispute. Consequently, they be paid penalty of delayed possession @ 15% per year, till the possession is given. MVL Limited is also directed to provide covered car parking, club membership, power backup, park facing flat, wherever applicable and corner flat, wherever is applicable, as mentioned in the agreement, within a period of 9 months, as already ordered, otherwise, it will return the entire amounts paid by the complainants, along with interest @15% p.a. from the date of receipt of the money, till realization.

    For all other complainants commission noted MVL Ltd. had changed its original plans and increased the number of floors, flooring area, ratio and density per acre. It has caused inordinate delay in completion of said projects. It has changed zoning plans, usage pattern, super area, carpet area and alteration of structures. This is an indisputable fact that the MVL Limited, of its own accord, arbitrarily and despotically, without seeking the consent of the allottees, has changed the tower number. This is deficiency on its part. The consumers cannot be compelled to accept the flats according to the sweet choice of the builder. The choice of builder cannot be imposed upon the consumers. It would be worst kind of highhandedness on the part of the builder.
    Consequently, all other complainants are entitled of refund of money. All the remaining complainants shall be refunded the money that they had paid with interest @15% p.a from the date they paid till realization.

    All the complainants are entitled to costs in the sum of Rs.25,000/each complainant.

  6. PRAVIR DAS says:

    IT’S A HISTORICAL JUDGEMENT OF NCDRC , PROTECTING THE INTEREST OF THE HAPLESS BUYERS .

    WISH TO CONTACT AND SEEK VIEWS OF THE COUNSEL OF COMPLAINANT , ON SIMILAR CASE OF HIGH-HANDEDNESS OF THE SO CALLED A PRESTIGIOUS BUILDER IN NOIDA .

  7. Abhinav says:

    Good luck for other cases like that

  8. The agreement of builders are always one sided, all the clause they put in their favour, constructions are always delayed, but our consumer also scared to take action against them.

  9. Viresh Arora says:

    Please advise if there is any supreme Court judgment to include brochures as a part of the agreement since builders glorify the project in the brochure but reality is 180 degrees

  10. Gupta B says:

    Welcoming judgment-

  11. Rajneesh says:

    What to do if builder stops work on under construction property? As par agreement possession is in October 2017, including grace period…but no hope of completion. Home loan Emi and rent both draining my income, and running through money crisis…

  12. MANJEET says:

    Pl let me know why the Foras or courts not granting interest on refunds to harassed property buyers on refund of payments made to the Developers/ Builders on compounding basis. Why simple interest is allowed. It should be argued that the consumer has suffered on all counts after years of investing their hard earned money. After a decade the property rates have sky rocketed and new properties are beyond their reach. The builder charges astonishing rates for delayed payments even over20%. But go scot free even when they delay the project inordinately. At least he should be made to pay at the bank lending rates with quarterly/ half yearly / yearly rest. A simple interest rate of 12% is less than 5%,compounding yearly interest which is equivalent to saving account bank interest. Then the investments are not in thousands now or 1/2 lakhs. They are over half CR. and more.

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