Delhi consumer commission orders Rs 79 lakh refund to homebuyers over 15-year possession delay
New Delhi, June 15 (IANS) The Delhi State Consumer Disputes Redressal Commission has directed a Ghaziabad-based cooperative housing society to refund over Rs 79 lakh to two homebuyers, along with interest and compensation, holding it guilty of deficiency in service for failing to hand over possession of flats even after more than 15 years.
The complaint was filed by Parmod Kumar Mahopatra and Mahender Singh Bisht, both employees of the National Highways Authority of India (NHAI), against Sanchar Nest Sahkari Awas Samiti Ltd over prolonged delays in delivering flats booked under the society’s housing project.
According to the complaint filed by advocate Sarvesh Roy, the two homebuyers became members of the society in 2010 after being assured possession of residential flats by 2012. Following disputes relating to the original project land in Noida, the society shifted the bookings to its “Palm Wood Enclave” project in Wave City, Ghaziabad, on assurances that the amounts already deposited would be adjusted.
The complainants alleged that despite making substantial payments and arranging home loans to meet repeated demands, the project remained incomplete. They contended that the society kept escalating costs under various heads, including parking, GST, service tax and other charges, while continuously extending the completion timeline.
Records before the Commission showed that the complainants paid a total of Rs 79.43 lakh towards two 3BHK flats, substantially higher than the originally indicated costs. However, physical possession was never handed over despite allotment letters being issued in June 2019. The housing society opposed the complaint, arguing that it was a cooperative society and not a commercial builder, and therefore, no consumer-service provider relationship existed between the parties.
It also contended that the complainants had themselves sought cancellation of their memberships and that delays occurred due to land disputes, increased construction costs, environmental restrictions and the Covid-19 pandemic.
Rejecting the objections, a Bench of Justice Sangita Dhingra Sehgal (President) and Member Bimla Kumari held that the complainants qualified as consumers under the Consumer Protection Act and were entitled to seek relief before the consumer forum.
The Commission observed that a cooperative housing society undertaking the construction of residential flats for consideration falls within the ambit of a service provider under consumer law.
Referring to settled legal principles on housing construction disputes, the judgment said: “Failure to deliver possession being a continuous wrong, it constitutes a recurrent cause of action and, therefore, so long as the possession is not delivered to the Complainants, the Complainants are within their right to file the present complaint before this commission.”
It further said that even though the agreements were executed in July 2013, possession had not been delivered after more than 15 years. “It is clear that the Opposite Party failed to hand over the possession of the flat in question even after the passing of more than 15 years from the date of the agreement dated 25.07.2013,” the Commission said.
Rejecting the society’s reliance on Covid-19 and other factors, the Justice Sehgal-led Bench observed that possession remained undelivered for several years even before the pandemic and that no cogent documentary evidence had been produced to justify the prolonged delay.
“It is clear from the record that possession of the flats remained undelivered for several years, even prior to the outbreak of the COVID-19 pandemic in the year 2020. Therefore, the contention regarding COVID-19 raised by the Opposite Party to justify the inordinate delay in handing over possession is devoid of merit and is accordingly rejected,” the judgment said.
Holding the society deficient in rendering services, the Commission directed it to refund Rs 39.08 lakh to one complainant and Rs 40.34 lakh to the other.
It ordered payment of interest at 8.25 per cent per annum from the dates of respective payments till June 8, 2026, provided the refund is made by August 8, 2026. In case of default, the refund amount will carry interest at 11.25 per cent per annum from the date of the deposit until actual realisation.
Additionally, the Commission awarded Rs 4 lakh towards mental agony and harassment suffered by the complainants and Rs 1 lakh towards litigation costs.
–IANS
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