The Delhi High Court ordered NBCC to refund over INR 76 lakh plus 12% interest compensation to a homebuyer who did not receive possession of his flat even after paying the full sale price in 2017. The petitioner, a retired government employee, had purchased a flat in NBCC's 2012 Gurugram housing project but structurally defective houses were constructed, leaving him with no housing options. NBCC was criticized for refusing interest on the refund and not ensuring rehabilitation. The court said NBCC's offer to return only the principal without interest was inadequate given rapidly rising land prices in NCR.
The Delhi High Court ordered NBCC to refund over INR 76 lakh plus interest to a homebuyer and pay INR 5 lakh in compensation for causing him "extreme mental agony". The homebuyer had purchased a flat in NBCC's 2012 Gurugram project but did not receive possession even after paying the full sale price of INR 76 lakh in 2017.
The HC observed that a home is a significant lifetime investment involving years of savings and planning. Therefore, compensating wronged homebuyers is important to remedy past harms and deter future misconduct.
The petitioner, a retired government employee, said he purchased the flat in 'NBCC Green View Apartments', a project launched in 2012 for Gurugram, but in spite of paying the entire sale price of over INR 76 lakh in 2017, the unit was never handed over to him.
Structurally defective houses were constructed, leaving him with no options. NBCC was criticized for refusing interest on the refund and not ensuring rehabilitation.
Given rapidly rising land prices in NCR, the court said NBCC's offer to return only the principal without interest was inadequate. A rent allowance of INR 12.50 per sqft for six months also did not constitute proper compensation.
The court ordered NBCC to refund the full payment plus 12% interest within six weeks. Considering the petitioner's extreme hardship over seven years and mental agony, INR 5 lakh compensation was also awarded.
NBCC accused the petitioner of "forum shopping", stating he has already approached the fora under the RERA Act and the Consumer Protection Act, and therefore the petition should not be entertained by the high court. But the High Court dismissed this argument, with the court stating the petitioner's desperation, not strategy, led him to approach multiple forums. The behaviour, it added, arises out of a sense of frustration, helplessness and lack of legal knowledge.
When builders fail to deliver as promised, it shatters homebuyers' trust, finances, stability and mental well-being, forcing them to seek legal relief. Compensating wronged buyers deters future misconduct, the court observed.
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