The Delhi State Consumer Disputes Redressal Commission has mandated a significant refund and imposed penalties on a real estate developer for failing to deliver possession of flats. In a decisive ruling on December 19, 2024, the commission directed the developer to refund approximately Rs 2.43 crore to a homebuyer and additionally slapped a fine of Rs 5 lakh for causing mental agony and harassment.
The case, presided over by Commission President Sangita Dhingra Sehgal and Judicial Member Pinki, centered on the developer’s inability to provide possession of three flats located in a Gurugram project, despite the buyer having paid the full amount back in 2013.
The commission dismissed the developer’s claim that the consumer body lacked jurisdiction over the matter, stating, “It is clear that the opposite party failed to hand over the possession of the said units in question even after more than 11 years since the first memorandum of understanding dated July 24, 2013. Therefore, the deficiency stands proved.”
Further undermining the developer’s defense, the commission rejected the excuses regarding delays in applying for occupation certificates due to ongoing construction on the Dwarka Expressway and various governmental and court stoppages between 2016 and 2019.
“We hold that the opposite party is deficient in providing its services to the complainant. It had given false assurances regarding the timeline for completing the construction and unjustly held the complainant’s hard-earned money for many years,” the commission stated in its order.
