NCDRC orders DLF to pay 12% per annum for delaying flats
NEW DELHI: In a major setback to real estate major DLF, country’s apex consumer court has pulled it up for delay in handing over possession of properties to 50 allottees in its DLF Valley project in Panchkula. It has directed the builder to hand them over as per its latest deadline of November-end this year with a warning that the company will have to pay Rs 5,000 per day to each allottee for further delay.
A bench of National Consumer Disputes Redressal Commission (NCDRC) comprising Justice J M Malik and member Dr S M Kantikar has also directed the company to immediately pay each allottee, a 12% interest on their investment per annum from the date of expiry three years from the date of allottment on the letter till the possession is given. It has further ordered a compensation of Rs 30,000 to each allottee as litigation charges and for facing mental agony.
“We are yet to receive the order from the court. We will examine the order, take legal advice and act accordingly,” a DLF spokesperson said.
The buyers had booked properties in DLF Valley comprising of 1,153 residential plots. The project was launched in 2010 and the allottees were promised to give possession within two years. The order mentions how the builder kept extending the deadline from second quarter of 2014 to the last quarter of 2016.
When the allottees moved the national consumer commission, the builder went to the extent of arguing that the buyers were not consumers and many of them had more than one house. But the commission did not find merit as many of the allottees proved how they were ready to shift.
DLF had submitted the stay order on construction because of an SC direction in April 2012 saying it was not liable for the delay. However, noting that the stay was vacated in April 2013, the NCDRC bench observed that the developer could get grace period of 12 months to complete the project.