NCDRC Order Builder have to refund with interest to Homebuyer

CA Ramesh Agrawal

The Builder will have to refund the amount with interest to Homebuyer if possession of the flat is not given on time. Jaypee Builder has been ordered by The National Consumer Disputes Redressal Commission (NCDRC) to refund the money along with interest for non-delivery of the booked flats in the Cove Greater Noida Project located at Jaypee Sports Green City in Yamuna Expressway Industrial Development Authority Area.

This action was taken on the complaints of Jaypee Cove Buyers Association filed by 71 home buyers. NCDRC has ordered the builder Jaiprakash Associates Limited to return the entire amount deposited by homebuyer within 6 Weeks with simple interest @ 9%. Apart from interest the builder will have to give Rs. 50,000 to each of the complainants home buyers. These flats were booked in 2011-2012 & almost 90-95 percent amount was paid by homebuyers to builder. The specified period for handing over the possession of flats was 42 Months. The Homebuyer association accused the builder of deficiency in service.

Opposing the complaint, on behalf of builder it was said that the NCDRC does not have right to hear to the case as cost of each flat is less than Rs. 60 lakhs. Moreover, as per builder some buyers are defaulters & cannot seek compensation for their mistakes.

The Builder said that the matter should be sorted out by mutual agreement. For delay, the builder stated that things were not in his control, which resulted in delay in possession.

The NCDRC has also clarified that those who have already settled the matter with the builder will not be allowed to take benefit of this order. Also, those homebuyers who have taken Home Loan will have to pay the home loan first, then can use the balance funds for themselves.

Comments

RERA Awards Rs. 65 Lakhs Compensation to Homebuyer for 9 Years Delay in Flat Possession

CA Ramesh Agrawal In a recent decision, the Haryana Real Estate Regulatory Authority (HRERA) has directed a builder to compensate a homebuyer with ₹65 lakh for an inordinate delay of over nine years in handing over a flat in Gurugram. Key Highlights: Background of the Case : The homebuyer had booked a flat in 2013, with the developer promising possession within a stipulated timeframe i.e., 7 th December 2015. However, the possession was delayed by more than nine years. Developer's Justifications : The builder attributed the delay to unforeseen circumstances, including the COVID-19 pandemic, the demise of the chairman of environmental impact assessment (EIA) committee, and inadequate water supply. H-RERA's Verdict : After reviewing the case, HRERA rejected the developer's justifications, deeming them insufficient to warrant such a prolonged delay. The authority emphasized that the reasons cited did not qualify as fo...

RERA SHOULD BE ABOLISHED - SUPREME COURT

CA Ramesh Agrawal On 12 th February 2026, the Supreme Court expressed serious dissatisfaction with the functioning of the Real Estate Regulatory Authority (RERA), indicating that the institution, should be abolished in its current form. In this regard please note: - The Hon. Supreme Court strongly criticized the current functioning & working of RERA and observed that RERA should be abolished in its existing form & there is a need to rethink the role being played by it. The Apex court urged all States to examine who is actually benefiting from RERA’s functioning. The Bench comprising of Chief Justice of India (CJI) Surya Kant and Justice Joymalya Bagchi observed that RERA is helping defaulting builders rather than effectively protecting homebuyers or fulfilling its intended objectives. The Bench emphasized that States should revisit the original purpose behind the enactment of the RERA Act. As quoted by Bar and Bench, CJI Surya Kant stated “ All States should now think of...

Supreme Court Ruling Warns Homebuyers: Registration Is Not Ownership

CA Ramesh Agrawal The Supreme Court in a significant ruling has stated that only registering a property does not make someone its legal owner. The judgement, delivered in the Mahnoor Fatima Imran vs M/s Visweswara Infrastructure Private Limited case, has direct implications for millions of Indian homebuyers and investors. If someone has bought a property solely based on a registered sale deed, then have a look at the below points. Understanding the Law: Registration Does Not Equal Ownership “Ownership of a property comprises several aspects, of which registration is only one,” says Mr. Harsh Parikh, partner at a Law Firm, Khaitan & Co. Under Indian law, properties above Rs. 100 require registration, but that’s not all. “A buyer must also prove full payment, possession, and custody of original title documents,” he explains. Chairman and Director of Prime Developments, Mr. Rakesh Malhotra stated that “Registration provides prima facie evidence of a transaction, but it doesn’t c...

RERA Master

Search This Blog