Complainant Not Bound To Accept Possession After Unreasonable Delay: Delhi State Commission Holds Raheja Developers Liable

Brief Facts of the Case

The complainant had booked a residential plot in a project known as “Raheja's Aranya City”, developed by the Raheja Developers/developer. A builder-buyer Agreement was executed, whereby the developer promised to hand over possession within 36 months. The complainant has paid huge sums but the plot still remains incomplete and uninhabitable. Several emails and legal notices have been sent asking for the execution of conveyance deed or a refund. Not getting an appropriate response, the complainant also filed a case before the State Commission of Delhi.

Contentions of the Developer

The developer submitted that the complainant is not a consumer because the plot was purchased to be used for commercial gain or with the intention to make profits. He added that the complaint was, in any event, time-barred by limitation within the Act. The delays caused due to factors out of his control, was also another reason submitted where he had claimed possession, based upon giving of completion certificate.

Observations by the State Commission

The State Commission observed the complainant was a consumer under the Consumer Protection Act since the developer failed to provide evidence proving the purchase was for commercial purposes. It ruled that delays in possession and failure to deliver services as promised constituted a deficiency in service. The commission noted that the complainant had a continuous cause of action until possession was handed over. Referring to various precedents, including Arifur Rahman Khan vs. DLF Southern Homes Pvt. Ltd., the commission directed the builder to refund the paid amount of Rs. 1,10,22,326 with 6% interest. It also awarded compensation of Rs. 5,00,000 for mental agony and harassment, along with Rs. 50,000 as litigation costs, emphasizing that the complainant was not bound to accept possession after an unreasonable delay.

Case Title: Mr. Hans Sachdev Vs. M/S Raheja Developers Pvt. Ltd.

Case Number: C.C. No. 77/2021

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