Holding that a homebuyer cannot be made to wait indefinitely for possession of a flat, the National Consumer Disputes Redressal Commission (NCDRC) directed Pune-based Kakade Construction Company Pvt Ltd to complete two flats in its Kakade City project within three months or refund the buyers’ money with 15% annual interest.
Event Context
Team Analysis
In an order passed on July 14, a bench comprising presiding member Justice Sudip Ahluwalia and member Sadhna Shanker partly allowed a consumer complaint filed by Pune residents Ajay Anant Dhurve and Renuka Ajay Dhurve, who had booked two flats in the Kakade City project at Hingane (Budruk) in 2006 but have been waiting for possession for nearly two decades.
The complainants alleged that despite the lapse of several years, construction of the building remained incomplete, no occupancy certificate was obtained, and the builder never raised a demand for the remaining sale consideration.
The commission observed that nearly two decades had elapsed since possession became due and the builder had neither completed construction nor secured an occupancy certificate. “Nearly two decades have elapsed, and admittedly neither possession has been delivered nor has any occupancy certificate been obtained. The opposite party has also not raised any stage-wise demand for the balance consideration. The failure of the opposite party to complete the project and deliver possession within a reasonable period clearly amounts to a deficiency in service and unfair trade practice,” the commission held.
The commission further ruled that if the builder fails to obtain the occupancy certificate and hand over possession within the stipulated period, it must refund ₹3.01 lakh along with 15% annual interest from the respective dates of deposit until realisation. The commission also awarded ₹50,000 as litigation costs. In case of default in complying with the order, the refundable amount will carry enhanced interest at 18% per annum for the period of default.
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According to the order, the couple booked the flats for a total consideration of ₹37.99 lakh. They initially paid ₹51,000 at the time of booking and later deposited another ₹2.5 lakh, totaling about ₹3.01 lakh. They also spent around ₹2.25 lakh towards stamp duty and registration charges. An agreement for sale was executed on June 13, 2006, and registered on June 23, 2006. Under Clause 9 of the agreement, the builder undertook to hand over possession within 18 months from the commencement of construction, making December 2007 the agreed deadline.
