Landmark Decision on Delay in Possession by DLF
The buyers of flats in Panchkula (Haryana) were relieved from the 12% penalty imposed on Real Estate giants DLF Ltd.
This was in favour of 50 buyers who had purchased flats back in 2010 and were promised possession within 24 months of such purchase by DLF, delaying the giving of possession the National Consumer Disputes Redressal Commission (NCDRC) bench headed by Justice J M Malik directed the firm to hand over the apartments to buyers as per a list proposed by DLF for scheduled possession and saying it amounted to “cheating”.
The Honorable Bench recognised the fact that the possession of property had to be delivered within three years including the grace period from the date of letter of allotment till possession was to be given by 2013. After this, it will have to pay interest till the period it has now proposed before the commission.
It further ordered the builder to pay Rs 30,000 compensation each to all the 50 complainants for all sort of harassment and anguish faced by them in following up with proceedings and other complexities for attaining which was already theirs.
Benefits to prospective home-buyers / consumers
- NCDRC’s order has promoted timely execution of projects thereby achieving the objective of housing for all.
- Sense of confidence of consumer in the real estate sector has been restored and further a horizon of hopes is visible which was not in the recent past.
- Obviously, the boost in domestic market brings along progress in foreign investment in the sector.
- Illegal and unplanned development will get curbed to a large extent.
- Indefinite delay in dispute resolutions in civil courts may be reduced when such precedents are laid down.
About the Author
This article has been authored by Ayushi Sharma, Founding Intern at LegalNow.
