Consumer commission asks CHD Developers to refund Rs 3.4 crore to home buyers, give compensation

Apex consumer commission NCDRC has directed a real estate builder to refund within four weeks Rs 3.4 crore received from four home buyers, along with compensation, saying that they cannot be asked to wait indefinitely for the delivery of possession in the absence of a committed date while the company enjoys their hard-earned money.

The National Consumer Disputes Redressal Commission (NCDRC), in four similar orders, has directed the CHD Developers to pay compensation at the rate of 12 per cent on the principal amount paid by each home buyer, from the date of payment till the day refund is given.

"The complainants cannot be asked to wait indefinitely for the delivery of possession in the absence of a committed date and the act of the Opposite Party (developers) in relying on Force Majeure clause while enjoying the hard earned money of the Complainants for a long period without any valid reason, is not only an act of deficiency of service but also amounts to unfair trade practice," NCDRC President R K Agrawal and member M Shreesha said.

The commission also directed the company to pay Rs 25,000 to each of the four home buyers as cost of litigation within a month and clarified that since the interest is being awarded as compensation, therefore tax cannot be deducted from the amount.

The complainants had booked residential flats with CHD Developers in its housing project 106 Golf Avenue, which was to be constructed in Sector 106, Gurgaon, Haryana.

The company had promised the home buyers to deliver possession of their respective flats within 42 months of the execution of the agreement.

The complainants alleged that possession was not offered to any one of them despite having paid different amounts to the company.