NCDRC holds Sushma Buildtech Liable for deficiency in service
Real Estate

NCDRC holds Sushma Buildtech Liable for deficiency in service

The National Consumer Disputes Redressal Commission (NCDRC), under the presidency of AVM J. Rajendra, ruled that builders cannot compel buyers to accept possession of property after significant delays. The commission affirmed the buyer's right to either accept delayed possession or seek appropriate compensation. The complainant had booked a flat with Sushma Buildtech, and a Flat Buyers Agreement was executed specifying possession within 30 months (24 months plus a 6-month grace period). Despite receiving 97% of the sale price, the builder failed to deliver possession within the agreed timeframe. Dissatisfied with the delay, the complainant filed a consumer complaint with the Punjab State Commission, seeking relief.

The State Commission ruled in favour of the complainant, ordering the builder to compensate at the rate of ?5 per sq. ft. per month of the flat's super area from the stipulated delivery date until possession, along with 6% annual simple interest on the deposited amount of Rs 5.43. Additionally, litigation costs of Rs 65,000 were awarded. Aggrieved by this decision, the builder appealed to the National Commission. The builder contended that the complaint lacked pecuniary jurisdiction, arguing that the complainants, who owned another property and purchased the flat for speculative purposes, did not qualify as 'consumers' under the law. The builder denied any service deficiency, citing project development challenges such as labour shortages, sand scarcity, and demonetization. They maintained that all necessary approvals were in place as stipulated in the Apartment Buyer's Agreement. The NCDRC observed that the complainants had paid Rs 6.42 million towards the flat, as evidenced by receipts. Despite fulfilling their financial obligations, the builder failed to meet the possession deadline agreed upon in the contract. Emphasising the rights of homebuyers, the commission referenced precedents such as Emmar MGF Land Ltd. & Ors. Vs. Amit Puri and Pioneer Urban Land & Infrastructure Ltd. Vs. Govindan Raghvan, affirming that buyers have the right to seek compensation for possession delays.

Modifying the State Commission's order, the National Commission directed the builder to pay 6% simple interest on the deposited amount of Rs 6.42 million from the date the flat was due for possession until delivery. Additionally, Rs 100,000 was awarded to the complainants for litigation expenses.

(Source: Live Law)

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

The National Consumer Disputes Redressal Commission (NCDRC), under the presidency of AVM J. Rajendra, ruled that builders cannot compel buyers to accept possession of property after significant delays. The commission affirmed the buyer's right to either accept delayed possession or seek appropriate compensation. The complainant had booked a flat with Sushma Buildtech, and a Flat Buyers Agreement was executed specifying possession within 30 months (24 months plus a 6-month grace period). Despite receiving 97% of the sale price, the builder failed to deliver possession within the agreed timeframe. Dissatisfied with the delay, the complainant filed a consumer complaint with the Punjab State Commission, seeking relief. The State Commission ruled in favour of the complainant, ordering the builder to compensate at the rate of ?5 per sq. ft. per month of the flat's super area from the stipulated delivery date until possession, along with 6% annual simple interest on the deposited amount of Rs 5.43. Additionally, litigation costs of Rs 65,000 were awarded. Aggrieved by this decision, the builder appealed to the National Commission. The builder contended that the complaint lacked pecuniary jurisdiction, arguing that the complainants, who owned another property and purchased the flat for speculative purposes, did not qualify as 'consumers' under the law. The builder denied any service deficiency, citing project development challenges such as labour shortages, sand scarcity, and demonetization. They maintained that all necessary approvals were in place as stipulated in the Apartment Buyer's Agreement. The NCDRC observed that the complainants had paid Rs 6.42 million towards the flat, as evidenced by receipts. Despite fulfilling their financial obligations, the builder failed to meet the possession deadline agreed upon in the contract. Emphasising the rights of homebuyers, the commission referenced precedents such as Emmar MGF Land Ltd. & Ors. Vs. Amit Puri and Pioneer Urban Land & Infrastructure Ltd. Vs. Govindan Raghvan, affirming that buyers have the right to seek compensation for possession delays. Modifying the State Commission's order, the National Commission directed the builder to pay 6% simple interest on the deposited amount of Rs 6.42 million from the date the flat was due for possession until delivery. Additionally, Rs 100,000 was awarded to the complainants for litigation expenses. (Source: Live Law)

Next Story
Real Estate

Colliers India Transacts 207,000 sq ft office space at Embassy TechVillage

Embassy Office Parks REIT, India’s first listed REIT and the largest office REIT in Asia by area, announced that it has signed an Agreement to Lease (‘ATL’) with global cyber security company Rubrik at Embassy TechVillage in Bengaluru.Colliers, a leading global diversified professional services company, specialising in commercial real estate services, engineering consultancy and investment management facilitated the transaction for Rubrik.Located on Bengaluru’s Outer Ring Road, Embassy TechVillage is one of Embassy REIT’s flagship office parks which offers world-class office spaces, ..

Next Story
Infrastructure Urban

Ensemble Infrastructure India Appoints Suman Saha as Director of Design

Ensemble Infrastructure India Ltd, a leading workplace design and build fit-out company, has appointed Suman Saha as its new Director of Design. With 25 years of experience in the industry, Suman is recognized for his innovative approach and excellence in design leadership.Working closely with the CEO, Suman’s appointment will enhance the company’s design communication across multiple touchpoints, ensuring smooth collaboration between clients, designers, and execution teams for superior project outcomes. Under his guidance, Ensemble will focus on creating workspaces and design labs that em..

Next Story
Products

Ribbon Vanity by Küche7: Fluid Design Meets Everyday Elegance

Küche7, pioneers in luxury stainless steel kitchens, have unveiled the Ribbon Vanity, a graceful creation that transforms bathroom spaces with its soft, flowing design and understated sophistication. Inspired by the fluid form of a ribbon, this vanity combines smooth finishes, clean lines, and gentle curves, offering a timeless aesthetic that seamlessly complements diverse interior styles.Available in a refined blush pink hue, the Ribbon Vanity effortlessly merges functionality with elegance. With thoughtfully designed storage options, it ensures that bathroom essentials are neatly organised ..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000