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NCDRC orders Godrej Projects to refund Rs 40 million to homebuyers
Real Estate

NCDRC orders Godrej Projects to refund Rs 40 million to homebuyers

18 Oct 2024 2 Min Read CW Team
The National Consumer Disputes Redressal Commission (NCDRC) has directed Godrej Projects to refund over Rs 40 million to homebuyers in five cases for failing to meet project commitments, including the construction of a 24-metre-wide road and essential amenities. The buyers had booked flats in the 'Godrej Summit' project in Sector 104, Gurugram.

The commission also ordered the developer to pay 9% annual interest on the refunded amount. The NCDRC panel, chaired by presiding member Ram Surat Ram Maurya and member Bharat Kumar Pandya, held Godrej accountable for not delivering on its promises, including the 24-metre road, even seven years after the bookings were made.

The panel noted that although the builder offered possession, the promised road has not materialized, despite being marketed as a key feature connecting the project to Dwarka Expressway. Buyers were also assured separate entry and exit points for three sections—A, B, and C—within the project. Instead, an alternate entrance was created on a narrow 10.06-meter-wide road, which faces encroachment issues. Access to parcels B and C now requires crossing through parcel A’s gate, adding to buyer dissatisfaction. The panel deemed this a "deficiency in services" and ruled that the buyers' decision to seek refunds did not constitute a breach of contract.

While the developer argued that it was actively pursuing the road’s construction through a civil writ petition in the Punjab and Haryana High Court, the commission found these efforts inadequate. It ruled that the responsibility to ensure the promised infrastructure lay solely with the builder, regardless of government delays.

A spokesperson for Godrej Projects responded, stating, "The refund has been ordered for non-construction of the 24-metre road, even though in a prior ruling for the same project, the NCDRC held that the developer is not responsible for roads beyond the project boundary. This matter is still sub-judice, and we are reviewing our legal options to appeal the decision."

(ET)

The National Consumer Disputes Redressal Commission (NCDRC) has directed Godrej Projects to refund over Rs 40 million to homebuyers in five cases for failing to meet project commitments, including the construction of a 24-metre-wide road and essential amenities. The buyers had booked flats in the 'Godrej Summit' project in Sector 104, Gurugram. The commission also ordered the developer to pay 9% annual interest on the refunded amount. The NCDRC panel, chaired by presiding member Ram Surat Ram Maurya and member Bharat Kumar Pandya, held Godrej accountable for not delivering on its promises, including the 24-metre road, even seven years after the bookings were made. The panel noted that although the builder offered possession, the promised road has not materialized, despite being marketed as a key feature connecting the project to Dwarka Expressway. Buyers were also assured separate entry and exit points for three sections—A, B, and C—within the project. Instead, an alternate entrance was created on a narrow 10.06-meter-wide road, which faces encroachment issues. Access to parcels B and C now requires crossing through parcel A’s gate, adding to buyer dissatisfaction. The panel deemed this a deficiency in services and ruled that the buyers' decision to seek refunds did not constitute a breach of contract. While the developer argued that it was actively pursuing the road’s construction through a civil writ petition in the Punjab and Haryana High Court, the commission found these efforts inadequate. It ruled that the responsibility to ensure the promised infrastructure lay solely with the builder, regardless of government delays. A spokesperson for Godrej Projects responded, stating, The refund has been ordered for non-construction of the 24-metre road, even though in a prior ruling for the same project, the NCDRC held that the developer is not responsible for roads beyond the project boundary. This matter is still sub-judice, and we are reviewing our legal options to appeal the decision. (ET)

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