NEW DELHI: Forcing homebuyers to pay pastime within the range of 18% per annum for lengthen in payment of instalment while the builders themselves pay a paltry 1.5-2% for lengthen in venture quantities to an unfair industry observe which cannot be enforced, the apex consumer commission has ruled.
A bench of National Consumer Disputes Redressal Commission (NCDRC) president Justice R Okay Agrawal and member M Shreesha said such provisions in a builder-buyer settlement are unfair and unreasonable and a real property company cannot be allowed to bind homebuyers with one-sided contractual phrases which give protection to the interests of the corporate at the cost of the patrons. It said there must be parity within the rate of interest to be paid by way of builders and homebuyers for not complying with the phrases of settlement and recommended that builders must pay the same rate of interest for lengthen in venture that they demand from patrons in case of lengthen in payment.
NCDRC handed the order on the plea of a homebuyer who had booked a flat in 2012 in "Winter Hills 77" venture in Gurgaon being advanced by way of Umang Realtech Pvt Ltd. The buyer was once promised possession of the flat by way of December 2015 and had paid around Rs 83 lakh in instalments.
As the builder didn't ship the venture even 4 years after the promised date, the patron sought refund of the cash with 18% pastime per annum, the speed at which he had paid penalty to the builder for lengthen in payment on his section.
The company, then again, said it was once at risk of pay compensation on the price of Rs 5 per sq. toes for lengthen as per the settlement. Rejecting its contention, the NCDRC said, "It is also an admitted fact that the opposite party (the company) charged interest at the rate of 18% pa for any delayed payments made by the purchasers and there is no justification in offering a meagre Rs 5 per sq ft, which comes to approximately 1.4% pa which is only a paltry percentage of what it was charging for any delayed payments."
"In any case, such a clause... amounts to an unfair trade practice since it gives an unfair advantage to the seller," the commission said.
It directed the corporate to refund the cash with 12% pastime allowing for that banks have decreased rates of interest lately. It additionally directed the corporate to pay compensation of Rs 1 lakh to the patron.
A bench of National Consumer Disputes Redressal Commission (NCDRC) president Justice R Okay Agrawal and member M Shreesha said such provisions in a builder-buyer settlement are unfair and unreasonable and a real property company cannot be allowed to bind homebuyers with one-sided contractual phrases which give protection to the interests of the corporate at the cost of the patrons. It said there must be parity within the rate of interest to be paid by way of builders and homebuyers for not complying with the phrases of settlement and recommended that builders must pay the same rate of interest for lengthen in venture that they demand from patrons in case of lengthen in payment.
NCDRC handed the order on the plea of a homebuyer who had booked a flat in 2012 in "Winter Hills 77" venture in Gurgaon being advanced by way of Umang Realtech Pvt Ltd. The buyer was once promised possession of the flat by way of December 2015 and had paid around Rs 83 lakh in instalments.
As the builder didn't ship the venture even 4 years after the promised date, the patron sought refund of the cash with 18% pastime per annum, the speed at which he had paid penalty to the builder for lengthen in payment on his section.
The company, then again, said it was once at risk of pay compensation on the price of Rs 5 per sq. toes for lengthen as per the settlement. Rejecting its contention, the NCDRC said, "It is also an admitted fact that the opposite party (the company) charged interest at the rate of 18% pa for any delayed payments made by the purchasers and there is no justification in offering a meagre Rs 5 per sq ft, which comes to approximately 1.4% pa which is only a paltry percentage of what it was charging for any delayed payments."
"In any case, such a clause... amounts to an unfair trade practice since it gives an unfair advantage to the seller," the commission said.
It directed the corporate to refund the cash with 12% pastime allowing for that banks have decreased rates of interest lately. It additionally directed the corporate to pay compensation of Rs 1 lakh to the patron.
'Builder, buyer to pay same penalty for delay'
!['Builder, buyer to pay same penalty for delay']()
Reviewed by Kailash
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June 14, 2019
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