The National Consumer Disputes Redressal Commission, chaired by Justice Ram Surat Maurya and Bharatkumar Pandya, held Panchsheel Buildtech accountable for service deficiencies due to delays in handing over possession. The commission ordered the builder to compensate for the delay and confirmed that allottees are contractually required to accept possession if it is offered after the issuance of the occupation certificate.
Case Summary
The complainant booked a villa with Panchsheel Buildtech, made an initial deposit, and subsequently paid more. Due to a price increase, the complainant opted for a different villa and received an allotment letter under a ‘flexi payment plan.’ Although all payments were made, the builder failed to complete construction or provide possession by the promised date, repeatedly stating that possession would be delivered within six months. The builder then reduced the number of villas and repurposed the land for multi-story towers, launching new projects and allegedly misusing funds. The complainant subsequently filed a complaint with the National Commission.
Builder’s Arguments
The builder claimed that the complainant’s allotment was modified at their request and that notices regarding the layout change were published with no objections. Due to uncontrollable delays, some amenities were reduced, but the cost of the villa remained unchanged. The allotment letter included tentative delivery dates subject to force majeure events, such as farmer protests and planning delays. The builder denied allegations of fund diversion and unfair practices, pointing to an arbitration clause in the allotment letter for dispute resolution and arguing that the complaint fell outside the commission’s pecuniary jurisdiction.
National Commission’s Observations
The National Commission found various construction deficiencies, some of which matched the specifications in the allotment letter. Disputes also arose regarding parking space, with the architect noting that the staircase intruded into the basement parking area. The commission directed the builder to rectify these issues and provide adequate parking space. Citing the Supreme Court’s ruling in Ireo Grace Realtech Private Limited Vs. Abhishek Khanna, the commission confirmed that if possession is offered after obtaining an occupation certificate, the allottee is contractually bound to accept it. Despite delays beyond the due date, the complainants were entitled to compensation for the delay. Referring to the Supreme Court’s decisions in Wing Cdr Arifur Rahman Khan & Ors. Vs. DLF Southern Homes Private Limited & Ors. and DLF Home Developers Vs. Capital Green Flat Buyers Association, the commission awarded a 6% interest on the deposit as compensation for the delay.
The National Commission upheld the complaint, ordering the builder to correct the deficiencies and pay compensation at a rate of 6% per annum on the deposit amount.
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