Delhi District Commission Orders Shree Vardhman Developers To Refund Amount Paid By Homebuyer

Background Facts

The homebuyer (Complainant) was allotted a flat measuring 1,495 sq. ft. in the builder's (Opposite Party) project named Shree Vardhman Gardenia, located in Sonepat, Haryana by paying an initial amount of Rs. 1,00,000/-.

To finance the purchase the homebuyer obtained a loan of Rs. 41,48,001/- from ICICI Bank in October 2019. Out of the total sanctioned amount the bank disbursed Rs. 38,68,001/- directly to the builder.

On 15.11.2019, the builder executed a Flat Buyer's Agreement with the homebuyer. As per the agreement the builder was supposed to bear the loan EMI payments until possession was handed over to the homebuyer.

However, the builder soon stopped making EMI payments to the bank which led to financial stress for the homebuyer. The homebuyer made multiple attempts to resolve this issue including sending letters to both the bank and the builder but all were ignored.

Furthermore, when the homebuyer visited the project site in mid-2020 he found that construction progress was behind schedule. Therefore, the complainant decided to withdraw from the project and sought a refund of the amount paid.

After not receiving the refund and feeling aggrieved the homebuyer filed a complaint before the CDRC, South Delhi seeking a refund of Rs. 46,38,001/- with 18% interest along with Rs. 5,00,000/- for mental anguish, Rs. 5,00,000/- for unfair trade practices and Rs. 1,00,000/- for litigation costs.

Observation by Commission

The Commission noted that even after paying a significant amount of consideration the homebuyer has neither received possession of the flat nor a refund of the amount paid after withdrawing from the project.

Commission referred Supreme Court's decision in Fortune Infrastructure v. Trevor D'Lima (2001) 5 SCC 442 where it was held that a person cannot be made to wait indefinitely for possession of the flat allotted to him and is entitled to seeks refund of the amount paid by him along with compensation.

Basing its reliance on Fortune Infrastructure (Supra), the Commission directed the builder to refund Rs. 46,88,001/- to the homebuyer along with an interest of 9% from the date of the last deposit within 30 days. Additionally, the Commission directed the builder to compensate the homebuyer with Rs. 10,000/- for the mental and physical inconvenience caused.

Case – Jasvinder Singh Versus Sree Vardhman Developers

Citation – CC/280/2021

Counsel for Homebuyer/Complainant – Advocate-On-Record Anshul Gupta and Advocate Kirti Dua, ANG Partners