Consumer Commission Orders Parsvnath Developers to Hand Over Possession of Flat to Complainant

In a significant ruling, the National Consumer Disputes Redressal Commission in New Delhi has directed Parsvnath Developers Pvt. Ltd. to hand over possession of Flat No.C-4/702 to the complainant, Prem Wati. The case, with Consumer Case No. 1177 of 2017, sheds light on the delays in construction and possession that many homebuyers face in the real estate industry. This article delves into the details of the case, the arguments presented by both parties, and the final order issued by the Consumer Commission.

Background:

Prem Wati, residing in Panipat, Haryana, filed a complaint against Parsvnath Developers Pvt. Ltd., seeking various reliefs including possession of the flat, compensation, and punitive damages. The complainant alleged that despite paying the required amount and fulfilling all obligations, the opposite party failed to complete the construction and offer possession within the agreed timeframe.

Complaint and Counter-Arguments:

Prem Wati, represented by her advocate Mr. Madhurendra Kumar, outlined the history of the transaction, starting from the initial booking and deposit made by M/s. Blue Star Buildprop (P) Ltd., the predecessor-in-interest of the complainant. The complainant argued that the agreed-upon construction period had expired, causing financial loss and undue mental agony.

On the other hand, Parsvnath Developers Pvt. Ltd., represented by their advocate Mr. Karan Rajpurohit, presented a defense based on force majeure events, including demonetization and the COVID-19 pandemic, which impacted the progress of construction.

Commission's Findings:

After careful consideration of the arguments and examination of the evidence, the Commission reached several important conclusions. Firstly, the Commission noted that the complainant was a subsequent transferee, and the due date of possession had expired based on the agreed-upon timeline. Secondly, the Commission rejected the defense of force majeure, stating that while such events may warrant an extension, the opposite party still had an obligation to complete the construction, obtain necessary certifications, and hand over possession.

Commission's Order:

Based on its findings, the Commission issued a comprehensive order in favor of the complainant. Parsvnath Developers Pvt. Ltd. was directed to complete the construction, obtain an occupation certificate, and hand over possession of Flat No.C-4/702 to Prem Wati within a specific timeframe. The opposite party was also instructed to pay delay compensation to the complainant at a rate of 6% per annum on her deposit from October 2016 until the offer of possession. Additionally, the Commission awarded costs of Rs. 50,000 to the complainant.

Conclusion:

The National Consumer Disputes Redressal Commission's ruling in Consumer Case No. 1177 of 2017 serves as a significant precedent for homebuyers facing delays in possession. The case highlights the importance of honoring construction timelines and fulfilling contractual obligations by real estate developers. The order emphasizes that while force majeure events may provide grounds for extensions, they do not absolve developers of their responsibility to complete construction and hand over possession.

As consumer rights gain prominence, this ruling sets a strong precedent for fair and timely resolution of disputes between homebuyers and developers. It reminds developers of the importance of delivering on promises made to consumers and emphasizes the legal consequences of non-compliance.

Note: Please note that the information provided in this article about the complaint filed in the National Consumer Disputes Redressal Commission (NCDRC) is for educational purposes only. The complaint number for reference is  CONSUMER CASE NO. 1177 OF 2017

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