The National Consumer Commission has determined that builders are obligated to compensate buyers when they fail to deliver a flat within the agreed timeframe. The Commission dismissed the builder's argument, which claimed that a price increase in properties should excuse them from paying compensation for the delayed delivery of flats. The Commission stated, “Such contention of any builder is unjustified and unreasonable because after sale of a property all the benefits accrue to the purchaser and not to the vendor. In any case, if it is accepted, the builders would earn crores of rupees by delaying the delivery.”
The Commission Bench, overseen by Justice M B Shah, ordered Ansal Properties and Industries Ltd to compensate Kunj Bihari Mehta with Rs 50,000 for the “high-handed and rough behaviour” exhibited by the company's manager while handling Mehta's complaint. The Commission sided with Mehta, directing the prominent developer to pay an interest rate of 12% over nine years on Rs 25.29 lakh that Mehta had deposited back in 1997.
Notably, Mehta received the flat in December 2007, nine years after the company's promised delivery date. Conversely, the company contended that it had informed Mehta about the availability of the flat in 2003. However, Mehta argued that the notification was returned to the company because he had moved residences.