Home buyer gets higher compensation against delayed projects

Home buyer gets higher compensation against delayed projects

RM | March 27, 2017 | Monday

Mumbai: An agreement has been executed for builders which state that either free them of the liability to pay interest or return payment of agreed interest if they delay the project.

Case Study: a home buyer named Dr. Ambuj Choudhary had booked a flat in Omaxe Parkwood in Himachal Pradesh which was constructed by Omaxe builders. Base price was Rs 16,94,550 and possession time was after 18 months. Mr. Choudhary paid 3 lakh as deposit in 2016.

Construction was delayed due to necessary approvals had not been obtained from the authorities. In March 2009, a formal letter was presented for sale of flat. Mr. Choudhary paid full amount with time to time installments through a housing loan from IDBI. But the construction did not begin Mr. Choudhary sent letters and legal notices, but the builder did not respond.

Victim, filed a complaint in Chandigarh State Commission, describing fraud done by the Omaxe builder, and further claiming refund of the amount by him with 18% interest, rent for alternative accommodations, etc.

When Omaxe builder was questioned, the builder blamed Mr. Choudhary for failing to make timely payment of installments. I addition it claimed that the construction was on full swing and possession will be delivered in the given course of time.

The State Commission considered the evidence and ordered the builder to refund the amount received with 6% interest, and for delay, monthly compensation @ Rs 5 per sq ft. of super built-up area was also awarded as per terms of agreement. In addition, compensation of 1 lakh and litigation costs of Rs 20,000 was also awarded. Mr. Choudhary wanted the interest rate to be enhanced to 18%, while the order to be set aside.

The National Commission concluded that builder has resented false appeal on buyer for not paying installment timely, hence, observing that a purchaser cannot be faulted when the builder delayed construction.