She booked a nearly ready flat in 2020 but never got possession — court orders developer to pay over Rs 36 lakh

NEW DELHI: A real estate developer has been directed to refund more than Rs 36 lakh along with compensation to a homebuyer after leaving her waiting indefinitely for possession of her flat, years after the promised possession date.The District Consumer Disputes Redressal Commission-II, Chandigarh held that a buyer cannot be forced to wait endlessly for a flat or plot when the builder fails to complete the project and hand over possession within a reasonable time.What was the issueThe complainant booked a 2 BHK flat in a project launched by the builder and paid a booking amount of Rs 4,00,000, and later paid Rs 30,34,000 towards the sale price on March 5, 2021.

She was allegedly told by the sales representative that the flat is nearly ready and possession would be handed over to her by October 2021.But possession was never delivered to her and the company kept giving fresh assurances, including a promise of possession by March 2022, which also wasn't kept. She further paid an additional Rs 2,02,000 towards tiling charges, which the developer demanded.In August 2023, frustrated by the delay, the complainant approached RERA and the two sides signed a settlement agreement in August, 2024.

Under the agreement the company agreed to pay her Rs 24,000 a month as compensation for the delay, with a 7 per cent hike if the possession still wasn't given by June 30, 2025. But later the company stopped paying this amount, citing a lack of funds, and construction at the project came to a complete halt.The complainant then approached the consumer court seeking a refund of her money at current market value, continued monthly rent till the case was resolved, and compensation for mental agony and harassment.What did the commission sayThe bench comprising President Amrinder Singh Sidhu and Member B.M. Sharma held that the developer did not appear despite being served notice and was proceeded against ex-parte.The bench held that the evidence and materials clearly show that the possession was never delivered, even though it was due back in January 2022 and the developer kept on postponing the possession. It noted that the prolonged delay amounted to a deficiency in service and caused financial loss and mental harassment to the buyer.The commission further noted that the company itself had acknowledged the delay and agreed to pay compensation — but then defaulted on even that."The evidence on record shows that the OP failed to adhere even to the terms of the settlement and defaulted in payment of the agreed compensation from December 2025 onwards."It also cited the National Consumer Disputes Redressal Commission's rulings in Sujay Bharatiya v.

Unitech Reliable Projects and Sanjiv Kumar Jain v. Lodha Crown Buildmart, both holding that prolonged, unexplained delay in handing over possession by itself entitles a buyer to a refund.The commission rejected the complainant's demand for a refund at current market value, noting that consumer law ordinarily allows refund of the amount actually paid, along with compensation.The commission held the developer responsible for the delay and directed it to pay the full Rs 36,36,000 deposited by the complainant and continue paying the delay compensation agreed under the 2024 Settlement Agreement until the refund is actually paid and also pay an additional amount of Rs 50,000 towards harassment and litigation costsThe order is to be complied with within 45 days, failing which the company will have to pay Rs 1,000 per day as additional penalty.