If builder delays in handing over house then house buyer can go to consumer court: Supreme Court

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New Delhi: The Supreme Court on Monday delivered a landmark judgment in favor of home buyers. The court said that despite the special law Rera enacted in 2016 to look into cases involving real estate companies, consumers could go to court for delays in handing over houses, such as refunds and compensation against the company concerned.

The apex court held that the real estate company Messrs. Imperia Structures Ltd. Rejected the argument that after the implementation of the Real Estate (Regulation and Development) Act (RERA), all matters relating to construction and completion of the project have to be settled under this Act and the National Consumer Dispute Settlement Commission (NHRC). NCDRC) should not consider related consumer complaints.

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The bench of Justice UU Lalit and Justice Vineet Saran referred to various judgments and said that although the proceedings before the NCDRC are judicial proceedings, the Commission is not a civil court under the provisions of the Code of Civil Procedure.

Judge Lalit said in the 45-page order, “It may have all the merits of a civil court, but still it may not be called a civil court.” Does not restrict the hearing of complaints. ”

Disposing of the case, the court said that the special law of 2016 has provided for the protection of the interests of home buyers, despite the fact that under the law, if they fall under the category of consumer, the consumer forum has lodged complaints of home buyers. Has the right to a hearing. This decision of the apex court was taken by Messrs. Imperia Structures Ltd. Has come on the appeal of. The decision of the NCDRC was challenged in the appeal.

The Consumer Forum had passed the verdict while hearing the complaints of 10 house buyers of the company’s housing scheme ‘Esfera’ in Gurgaon, Haryana. The project started in 2011 and the complainants booked the house in 2011-12 by paying earnest money. He later filed a petition with the NCDRC, alleging that even after 42 months, he did not see any possibility of getting the house of his dreams.

The NCDRC accepted the complaints of 10 house buyers, including Anil Patni, in 2018 and asked the company to refund the money to the complainants from the day of deposit till they are paid with a simple interest of 9 per cent per annum. Also asked all the complainants to pay Rs. 50,000-50,000 in cost item.

The apex court said, “The instructions should be followed within four weeks of receiving the copy of the order. Failure to do so will result in interest at the rate of 12 per cent per annum. ”

The bench upheld the decision of the NCDRC, saying, “As promised, the construction work should have been completed in 42 months. The period had already expired before registration under the Rera Act of the project. Just because registration under the Rera Act is valid until December 31, 2020, does not mean that the right of the concerned allottees to take action is also suspended. ”

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