NCDRC, Real Estate News, ET Real Estate says builder liable for refund if not ready in lure of e-way link

New Delhi: It is common for builders to advertise and sell housing units in their housing projects, claiming that the site will soon be connected by metro or multi-lane roads.

now NCDRC has warned that such builders will have to refund the money to homebuyers if the metro or road link is not constructed within the time-frame promised by the authorities.

The National Consumer Disputes Redressal Commission (NCDRC) has held that delay on the part of civic authorities in construction of roads and providing water and electricity connections for a housing project can be a valid ground for home buyers to withdraw from a project. And the builder is liable to refund the amount.

While ruling on a homebuyer’s claim of refund, a bench of Justices Ram Surat Ram Maurya and Inder Jeet Singh held that builders are not liable to construct any development outside their property, which is to be done by the state authorities. But the homebuyers, who were affected by such advertisements, said the money invested, could not be forced to suffer due to lack of facilities.

In this case the flat was booked by the buyer of the house. Godrej Summit Housing Project in Sector 104, Gurgaon in 2015 and had paid an initial amount of Rs 51.36 lakh. The builder got the occupation certificate for the project in 2017 and offered to give possession to the buyer. But the buyer refused to pay the rest of the installment, alleging that the builder failed to fulfill its promise and the company canceled the allotment and forfeited the earnest money amounting to Rs 46.94 lakh, he told his lawyer Piyush Singh. Contacted NCDRC through VIDEO and demanded refund of the amount. ,

Singh said the builder had promised a 24 meter road connecting the housing project Dwarka Expressway But it was not built and there were insufficient utilities like regular water (supplied by tankers) and electricity (through generators) supplied.

On the other hand, the company said that it cannot do any construction outside the project and it is the work of government officials. It also argued that the 24-metre road connecting Sector 104 Gurgaon (project site) to the Dwarka Expressway was introduced by government officials in their plans and it did not mislead the buyers.

The manner in which the proposed 24-metre road, a key feature of the project, was featured in builder’s advertisements/brochures and buyers’ agreements, the commission said, was certainly an important factor for potential buyers. To book the units in the project believing that such connectivity would be present upon completion.