NCDRC asks Unitech to pay Rs 65 lakh, with 18% interest for flat delay

The country's apex consumer court seems serious in its endeavour to rein in builders who fail to deliver flats for years, taking buyers for a ride. Last week, the National Consumer Disputes Redressal Commission (NCDRC) ordered realty major Unitech to pay back Rs 65.36 lakh to a home buyer with 18% interest for its failure to deliver the flat in one of its projects in Greater Noida even nine years after the consumer had bought it.

A bench of Justice J M Malik and member Dr S M Kantikar said, "Keeping in view the bizarre conduct of the opposite party (builder), we further impose costs of Rs 50,000, which be paid to the complainant within 90 days from the date of receipt of copy of this order otherwise it will carry interest at the rate of 9% per annum."

The case was filed by one Navneet Chabra of Ludhiana, who had bought a flat in Habitat project of Unitech in Greater Noida in January 2006 and an agreement was signed between both the parties in November that year. "It was clearly agreed between the two that the flat would be handed over to my client within 36 months from the date of signing of the agreement. But it was no where near completion when Chabra moved the apex consumer forum," said Chabra's counsel Saurabh Jain.

The commission also mentioned that when the order was being dictated the counsel for the opposite party (builder) prayed that her submission should be recorded that her client was ready to offer an alternative flat to the complainant in compliance with the agreement. But the counsel for the complainant did not agree to it.

While stating that the purpose of law is to prevent the strong always having their way, the bench also recorded it hopes the new Real Estate Regulation Act will prove to be a boon for the consumers. "Hopefully the new changes would go a long way to pull the consumers' chestnuts out of the fire (rescue them from difficulties). The fabian policy adopted by the opposite party has benefited it a lot. It has utilised the amount in so many projects which he has started."

Unitech spokesperson did not respond to emails and text messages.

In the past couple of months this bench has passed several orders against powerful builders and in most of the cases it has imposed 18% interest on them. It's worth mentioning that builders often incorporate the provision to charge 18% interest in case of any default in payment by consumers. But in case of their default, builders pay an insignificant amount.

SOURCE: ETRealty.com