The NCDRC has ordered Godrej Projects to refund over INR 4 crore to homebuyers due to the builder's failure to deliver promised amenities, including a 24-metre-wide road, even after seven years. Despite the builder's claims of ongoing construction efforts, the Commission held it accountable for not fulfilling its commitments. Homebuyers are now entitled to seek refunds with penal interest, reinforcing their rights in such circumstances.
The country's top consumer commission, the NCDRC, has instructed real estate giant Godrej Projects to refund over INR 4 crore to homebuyers in five separate cases. The company failed to fulfil its commitments, including the construction of a 24-metre-wide road and other essential amenities, even seven years after the bookings were made. The homebuyers had purchased flats in the 'Godrej Summit' project located in Sector 104, Gurgaon. The National Consumer Disputes Redressal Commission (NCDRC) further ordered the builder to pay 9% interest on the refund amount.
In the ruling, the NCDRC panel, headed by presiding member Ram Surat Ram Maurya and member Bharat Kumar Pandya, held the builder responsible for failing to meet its promises, specifically the construction of the 24-metre-wide road and essential facilities that were assured to the buyers.
The bench noted that despite the offer of possession, seven years have passed without the promised road being constructed. It highlighted that expensive flats were marketed under the premise that the project would be connected to the Dwarka Expressway via this wide road. Additionally, separate entry and exit points were assured for each of the three parcels-A, B, and C-in the society.
The panel remarked that the homebuyers agreed to the sale price based on these key features. However, the builder has only constructed an alternative entrance and exit gate to parcel A, which is situated on a 10.06-metre-wide revenue road that is also subject to encroachments. To access the flats in parcels B and C, buyers will need to enter through the gate of parcel A and navigate across the narrow road. This situation indicates a failure to meet the commitments outlined in the brochure, which constitutes a deficiency in service. The panel stated that the homebuyer's request for a refund does not represent a breach of contract on their part.
Despite the builder's assertions that it was making active efforts to construct the road and even filed a civil writ petition in the Punjab and Haryana High Court to expedite the work, the NCDRC deemed these efforts inadequate. The commission ruled that Godrej could not evade its responsibility by blaming government authorities, emphasising that it was the builder's obligation to ensure the road's provision as promised.
This ruling by the NCDRC underscores the importance of accountability in the real estate sector, emphasising that builders must adhere to their commitments to homebuyers. The decision reinforces the legal rights of buyers to seek refunds and highlights the necessity for developers to deliver promised amenities. As this case progresses, it serves as a crucial reminder for all stakeholders to uphold their obligations and maintain transparency in property transactions.
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