Builder Can’t Deny Compensation For Delay In Flat’s Delivery

The National Consumer Commission has held that a builder cannot deny compensation to a buyer on its failure to deliver a flat within a stipulated time.

The Commission rejected a contention of the builder, pleading that it should not be directed to pay any compensation for delay in delivery of flat as the prices of property had gone up.

The Commission said,”Such contention of any builder is unjustified and unreasonable because after sale of a property all the benefits accrue to the purchaser and not to the vendor. In any case, if it is accepted, the builders would earn crores of rupees by delaying the delivery”.

The Commission Bench headed by Justice M B Shah directed Ansal Properties and Industries Ltd to pay a compensation of Rs 50,000 for “high-handed and rough behaviour” of its manager while dealing with a complainant Kunj Bihari Mehta.

Allowing a complaint of Mehta, the Commission also asked the real estate major to pay interest at 12% rate for 9 years on a sum of Rs 25.29 lakh deposited by him in 1997.

Mehta was delivered with the flat here in December 2007, 9 years after the promised date of the company.

The company, on the other hand, contended that it had sent a letter offering possession of flat to the complainant in 2003.

To this, Mehta submitted that the letter was received back by the company as he had shifted his residence.