Disputes panel has ordered realtor to pay home buyers compensation at 12% a year for delaying possession
The National Consumer Disputes Redressal Commission's (NCDRC) directive to Unitech to pay compensation at 12% per annum for delaying delivery of apartments to buyers in one of its Gurgaon projects is likely to become a precedent in cases filed by several other homebuyers' associations across the country , experts said.
More than half of the real estate projects across the country are currently delayed by over 12 months, of which about 25% are delayed by over 36 months, according to property research firm Liases Foras.
“This judgment will impact all cases where buyers are looking for possession of their flats,“ said advocate Sushil Kaushik, who fought the case on behalf of buyers of Unitech Vistas in Sector 70 of Gurgaon. “People are now aware that they can take on a builder and get reprieve from courts,“ he added.
A group of 100 other buyers in the Unitech Vistas project is moving to file similar cases against builder in NCDRC. Most of these people had bought homes in the project in 2009 and the agreement with builder said they would get delivery of their homes by February 2013, but they are still waiting.“Many people were scared earlier but now with this judgment, they have got a ray of hope. We will file cases against Unitech soon,“ said Piyush Gupta, a telecom professional who is leading the group.
Multiple options for appeal have opened up for buyers in the past few years. Apart from consumer forums, buyers have approached Competition Commission of India (CCI) as well and have got favourable orders against builders such as DLF. CCI had slapped a fine of `. 630 crore on DLF in 2011.
Vaibhav Gaggar, partner at law firm Gaggar & Associates, which represented the Belaire and Park Place buyers' associations against DLF at the CCI, said the NCRDC's order is a shot in the arm for consumers and the activism movement that is gaining ground. “Builders will have to be very , very wary now,“ he added.
In its order, the NCDRC on Monday said that Unitech will compensate buyers at 12% per annum for delay in delivery of apartments.
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