The National Consumer Disputes Redressal Commission (NCDRC) recently ordered Emaar MGF Land Limited to refund Rs. 3.25 crore to complainants for delaying the handover of their flats in Mohali, Punjab. The order was passed by a bench comprising of Justice R.K. Agarwal and Dr. S.M. Kantikar, and was based on a complaint filed by the flat buyers in 2018.
According to the complaint, the flat buyers had booked their apartments in Emaar MGF's project in Mohali in 2011, and were promised possession within 36 months. However, the developer failed to complete the project within the promised timeline, and even after a delay of several years, the flats were not handed over to the buyers. This led to the flat buyers filing a complaint with the NCDRC, seeking a refund of their money along with interest and compensation.
After hearing the arguments put forth by both parties, the NCDRC held that the developer had committed a breach of contract by failing to deliver possession of the flats within the promised timeline, and had also failed to pay the compensation as stipulated in the agreement. The Commission further observed that the complainants had been left with no other option but to approach the NCDRC for relief.
The NCDRC's Order
The NCDRC, in its order, directed Emaar MGF Land Limited to refund the entire amount of Rs. 3.25 crore paid by the complainants, along with an interest of 10% per annum from the date of each payment till the date of actual refund. The developer was also directed to pay a compensation of Rs. 3 lakh to each complainant towards mental agony, harassment, and cost of litigation.
Significance of the Order
This order by the NCDRC is significant as it highlights the importance of timely delivery of projects by developers, and the need to protect the interests of homebuyers who invest their hard-earned money in such projects. It also serves as a warning to developers that delays in project completion can have serious financial consequences, and they must ensure that they adhere to the timelines promised to homebuyers.
The Real Estate Sector and Homebuyers
In recent years, there have been several instances where developers have delayed the completion of their projects, leaving homebuyers stranded and financially burdened. The Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced to protect the interests of homebuyers and ensure timely delivery of projects. However, despite the provisions of RERA, cases of delayed possession and non-compliance with the terms of the agreement are still rampant in the real estate sector.
In such a scenario, the NCDRC's order in the Emaar MGF case is a step in the right direction, and serves as a reminder to developers that they must take their commitments seriously and deliver projects within the promised timeline. Homebuyers, on the other hand, must also exercise caution while investing in real estate projects and ensure that they read the terms of the agreement carefully before making any payments.
In conclusion, the NCDRC's order in the Emaar MGF case is a welcome development for homebuyers who have been waiting for justice for years. It is a step towards creating a more transparent and accountable real estate sector, where developers are held accountable for their actions and homebuyers are protected from unfair practices.
Note: The information provided in this article about Maharashtra Real Estate Regulatory Authority (MahaRERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances.
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