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The Delhi State Consumer Disputes Redressal Commission has ordered Parsvnath Developers to pay INR 5.5 lakh in compensation to a homebuyer for a significant delay in delivering a flat. The ruling, which references a Supreme Court precedent, highlights the developer's failure to meet its contractual obligations and holds it accountable for deficiency in service and unfair trade practices. The commission's decision not only awards compensation but also mandates the immediate handover of the flat.
In a landmark ruling that reinforces homebuyers' rights, the Delhi State Consumer Disputes Redressal Commission has ordered Parsvnath Developers to compensate a homebuyer for a protracted delay in the delivery of a residential flat. The case, filed by Nitin and Amita Bansal, concerned a 3BHK flat in a project where the builder had failed to meet the promised delivery date, which was contractually set for within 30 months of booking with a six-month grace period. Advertisement
The complainants had booked the flat in 2007 for INR 27.68 lakh and had already paid a substantial amount of INR 26.93 lakh. The commission, citing a Supreme Court precedent, found the developer guilty of deficiency in service and unfair trade practices.
As a result, Parsvnath Developers has been ordered to immediately hand over the flat to the Bansals and pay a total compensation of INR 5.5 lakh. This amount includes INR 4 lakh for the delay in delivery, INR 1 lakh for mental agony and harassment, and INR 50,000 for litigation costs. The order also includes a crucial provision that if the developer fails to make this payment, they must refund the entire amount paid by the buyers, along with an annual interest of 9% from December 12, 2014, until the date of the refund. The ruling serves as a strong message to developers about the legal and financial repercussions of failing to honor their commitments to buyers.
Such legal rulings and consumer protection laws are essential to regulate the real estate market. They provide a vital layer of supervision, ensuring that developers and builders are held accountable for their promises.Without these laws and the forums that enforce them, homebuyers would be left vulnerable to financial and emotional distress due to project delays, a lack of transparency, and unfair practices.
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