NCDRC Holds Experion Developers Liable For Deficiency In Service

The National Consumer Disputes Redressal Commission, presided by Justice Sudip Ahluwalia held Experion Developers liable for deficiency in service and stated that forfeiture of more than 10% of the basic sale price by the developer is unreasonable.

Brief Facts of the Case

The complainants booked a 3BHK flat with Experion Developers/developer in Gurgaon after being influenced by advertisements and verbal assurances. They were promised that the flat could be converted to a 2BHK if needed. They paid Rs. 42,69,334, including parking charges, but later stopped making payments, citing delays in construction. The developer canceled the allotment in 2017 and forfeited Rs. 39,37,227, offering only Rs. 3,06,458 as a refund. The complainants filed a complaint before the National Commission seeking a refund with interest and compensation for mental agony.

Contentions of the Developer

The developer claimed that the project was completed in time and that delays were caused by the complainants due to their default in payments. They claimed that the complainants stopped payments in 2014 for financial reasons and speculative motives, and not because of the delay in construction.

Observations by the National Commission

The Commission observed that while the complainants had defaulted on payment, the developer could not forfeit an amount of more than 10% of the total sale price. Referring to DLF Ltd. v Bhagwanti Narula, amongst others, it held that such forfeiture was unreasonable. The commission ordered that the developer refund the excess amount of Rs.81,534 with 6% interest from the date of filing of the complaint. However, the claims for extra compensation and mental anguish were dismissed. Costs be provided for by the parties to themselves.

Case Title: Mitesh Bhalla & Anr. Vs. Experion Developers Pvt. Ltd.

Case Number: C.C. No. 326/2019

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