The National Consumer Disputes Redressal Commission (NCDRC) has ordered Godrej Projects, a major real estate company, to refund over Rs 40 million to homebuyers in five separate cases due to its failure to meet promised 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 NCDRC also directed the builder to pay 9 per cent interest on the refund amount. A panel of the commission, led by presiding member Ram Surat Ram Maurya and member Bharat Kumar Pandya, held the builder responsible for "failing to deliver on its promises," particularly regarding the construction of the wide road and essential amenities.
The bench noted that although possession had been offered, seven years had passed without the promised road being built. Expensive flats were sold under the representation that the project would be connected to the Dwarka Expressway via the wide road. Separate entry and exit points were also promised for each of the three sections—A, B, and C—of the society. However, the builder had constructed an alternative entrance and exit gate for Parcel A on a 10.06-meter-wide road, which was under encroachment. Buyers of flats in Parcels B and C were required to enter through the gate of Parcel A and travel across a narrow road, a shortfall that the panel stated amounted to a "deficiency in services" and justified the homebuyers' decision to seek refunds, which was not considered a breach of contract.
The builder argued that it was actively working on the road's construction and had even filed a civil writ petition in the Punjab and Haryana High Court to expedite the process. However, the NCDRC found these efforts insufficient, stating that the builder could not evade responsibility by blaming government authorities. The commission ruled that it was the builder's duty to ensure the provision of the road as promised.
A spokesperson for Godrej Projects commented that the refund order was related to the non-construction of the 24-metre-wide road, even though the NCDRC had previously ruled that the developer was not responsible for constructing the road outside the project. The spokesperson also mentioned that the matter was still sub judice and that the company was confident in its case and was seeking legal advice on filing an appeal against the latest orders.
