The National Consumer Dispute Redressal Commission (NCDRC) recently ruled that homebuyers are entitled to seek refunds if the amenities promised by builders are not provided at the time of possession. This verdict follows numerous cases where developers, in a rush to meet deadlines, handed over flats without completing advertised features such as clubs, gyms, and green spaces. The ruling came in response to a complaint from a buyer of M3M Woodshire in Gurgaon, who cited significant deficiencies in the project. The NCDRC emphasised that advertised amenities must be delivered, granting the buyer a refund with interest.
In a significant ruling aimed at safeguarding the interests of homebuyers, the National Consumer Dispute Redressal Commission (NCDRC) has established that buyers are entitled to seek refunds if the amenities promised at the time of booking are not provided when the possession of the flats is offered. The decision comes as a response to numerous instances where developers, in their rush to meet deadlines and avoid legal complications, have handed over possession of flats without completing the amenities that were advertised as part of the project.
Many builders, in their eagerness to meet completion deadlines, focus solely on finishing the construction of flats, often neglecting the promised amenities such as clubs, gyms, green spaces, and shopping complexes. This has led to dissatisfaction among homebuyers who find that the reality of their new homes falls short of the expectations set by the glossy brochures and promotional material that initially attracted them to the project.
The commission's ruling was made in response to a plea by a homebuyer who had booked a flat in M3M Woodshire, located in Sector 107, Gurgaon. The buyer had entered into the agreement in December 2012, with the expectation of receiving possession of the flat by October 2016. The builder, however, obtained the occupation certificate only in April 2017 and offered possession soon after. The buyer refused the offer, citing the absence of the promised amenities.
Represented by lawyers Aditya Parolia and Ishita Singh, the homebuyer argued that there were significant deficiencies in the project. The green area, which was initially advertised as a key feature, had been substantially reduced and repurposed. Additionally, a 60-metre-wide road, which was supposed to connect the project to the expressway, was missing. The builder, however, disputed these claims and maintained that the buyer was not entitled to a refund. After reviewing the documents and the construction status, the commission approved the buyer's request and instructed the builder to refund the amount along with 8% interest.
After thoroughly reviewing the documents and the status of the construction, the commission sided with the homebuyer. It observed that the builder had indeed failed to deliver on the promises made in the project's promotional material. The commission emphasised that when a project is marketed and sold based on specific amenities, these features must be delivered as part of the final offering. If these amenities are absent at the time of possession, buyers have the right to reject the possession and seek a refund.
The bench, led by Binoy Kumar, noted that the complainant raised a significant issue regarding the builder's failure to complete the project as advertised. The bench observed that the builder had indeed fallen short by not delivering on the promised amenities, such as the clubhouse, convenience features, and shopping facilities, as outlined in the brochure. They emphasised that when a project is marketed and sold based on specific amenities, those promises must be fulfilled and cannot be disregarded. The commission stated that complainants are entitled to seek a refund if the project is not completed in all respects by the date of the possession offer.
This ruling highlights the accountability of developers to fulfil the commitments they make during the marketing of their projects and serves as a critical reminder that homebuyers are entitled to the full range of amenities promised to them. The decision is expected to have a significant impact on the real estate industry, ensuring that developers cannot sidestep their obligations and that buyers receive what they were promised.
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