NCDRC asks Chhattisgarh Housing Board to compensate homebuyers

The apex consumer commission has asked Chhattisgarh Housing Board to compensate homebuyers for the delay in ensuring promised amenities, and said its bid to take refuge in the "no time limit" clause in the agreement was unjustified.
"Merely saying that time is not specified in the agreement and the Housing Board can take whatever time period is convenient for it to complete the promised amenities without giving any substantial reasons, is ultra vires of what has been laid down by the Supreme Court...
"And is, therefore, totally unjustified and amounts to unfair trade practice," the apex consumer bench said, while directing the board to pay Rs 1.25 lakh each to 13 homebuyers in Chhattisgarh.

The bench had noted that the Board did not complete basic facilities like guest house, community hall, solar geyser in every house, sewerage treatment plant, etc., which were included in the cost of the house.
The commission was deciding the revision petitions filed by the homebuyers against the state commission's order which had set aside a district forum's verdict awarding Rs 5 lakh each as compensation for the delay.
According to the complaint filed by several homebuyers, they had booked properties under the Chhattisgarh Grih Nirman Project, the residential scheme formulated by the Chhattisgarh House Construction Board in 2013.

The allotment letter stated that the cost of the proposed house was only an estimated one and that final cost may be raised up to 10 per cent for which separate consent will not be taken and if there is a possibility that the final cost may be raised by more than 10 per cent, the buyers would be informed.

As per the complaint, the letter also said that if the buyer is not agreeable with the increase of 10 per cent, his/her deposited amount will be returned with an interest at 5 per cent per annum adding that the project was supposed to get completed within 24 months.
The Housing Board contended that time-frame was never mentioned in the brochure or in the Rules and therefore, stating that the project was delayed and demanding compensation for the same is unjustified.
The district forum had awarded Rs 5 lakh as compensation to each of the homebuyers on the ground of mental pain which was set aside by the state commission on the ground that the construction was made on the principle of 'no-profit, no-loss' and that there was no 'time limit' fixed for construction of the building house.