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NCDRC directs Raheja Developers to compensate buyer for delayed delivery

Earlier this week, the National Consumer Disputes Redressal Commission (NCDRC) directed Raheja Developers to compensate a homebuyer for delay in delivery and possession of a villa in their Gurugram project. The villa was part of Phase 1 of their project “Raheja Aranya City” situated in Sector 11 & 14, Sohna Road, Gurugram. The builder will have to compensate the aggrieved homebuyer with a sum of Rs 1.19 crores and an additional Rs 50,000 for litigation costs borne by him. The builder has been given six months to execute the order, after which an additional penalty of 15 per cent simple interest per annum will be added for the period of delay.

The homebuyer booked a villa in the project “Aranya City” in 2012 and began making payments in instalments as per the agreed terms of the contract. Raheja Developers were unable to obtain necessary approvals for Phase 1 of this project and therefore offered the buyer in question the option to take up another villa in Phase 2 of the same project. The payments for the previous plot would be adjusted against the new plot. Upon agreeing to the switch, the builder and home buyer entered into a new agreement in 2014 which clearly stated 42 months (including a 6-month grace period) as time of delivery. The home buyer continued making payments for the plot until 2018.

Upon realising that there was very little construction going on, the homebuyer filled two police complaints in 2019 and 2020 against the builder for violating the agreed upon terms and delaying delivering indefinitely. The builder attributed the delay to reasons covered under force majeure clause of the agreement. However, the NCDRC rejected this claim of the builder, stating that their interpretation of the clause is erroneous. Further, it stated that the builder’s reasons for deferring possession are unwarranted and that customers cannot be expected to wait indefinitely.

Earlier this month several disgruntled homebuyers of another project by Raheja Developers called “Rahjea Revanta” in Gurugram collected to protest outside their office in Gurugram over delayed possession. The individuals claim to have paid up almost 90 per cent of the total value of their flats but have been waiting for over five years for possession. Although spokespersons from Raheja Developers issued a statement discussing details of the measures being undertaken by the developer to speed up construction and delivery of the project, no definite relief was provided.

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