Delhi Consumer Forum Orders Rs 84 Lakh Relief to Homebuyers After 15-Year Delay in Flat Possession

In Pramod Kumar & Anr v. Sanchar Nest Sahkari Awas Samiti Ltd, the Delhi State Consumer Disputes Redressal Commission directed a Ghaziabad-based cooperative housing society to refund over ₹79 lakh to two homebuyers and pay ₹5 lakh as compensation and litigation costs after failing to hand over flats for more than 15 years.

The Bench of Justice Sangita Dhingra Sehgal (President) and Bimla Kumari (Member) held the housing society guilty of deficiency in service and unfair conduct. The Commission found that despite receiving substantial payments from the buyers, the society neither delivered possession of the flats nor refunded the money.

The dispute began in 2010 when the homebuyers booked 3BHK flats in a housing project proposed in Noida. Possession was promised by 2012. However, the project was later shifted to Ghaziabad due to alleged land-related issues, leading to fresh agreements and revised costs in 2013.

Even after the relocation of the project, construction did not progress as promised. The Commission noted that the housing society repeatedly extended completion timelines while continuing to raise additional financial demands from the buyers under different heads.

The Commission observed that the buyers had fulfilled their obligations by making payments and even availing home loans. Despite this, the society failed to deliver possession within the expected period of 42 to 48 months from the date of the agreements.

Rejecting the society’s defence, the Commission ruled that a cooperative housing society can be treated as a service provider when it undertakes construction activities for buyers. It further clarified that the availability of remedies under real estate laws does not prevent aggrieved homebuyers from approaching consumer forums.

The Commission also held that failure to hand over possession amounts to a continuing cause of action. As a result, the complaint could not be dismissed merely on the ground of limitation.

The housing society attempted to justify the delay by citing factors such as land disputes, rising construction costs, environmental restrictions and the COVID-19 pandemic. However, the Commission found that no supporting evidence had been produced. It also noted that the project had already suffered significant delays long before the pandemic began.

Consequently, the Commission directed the society to refund ₹39.08 lakh to one buyer and ₹40.34 lakh to the other. The refund amount will carry interest at 8.25% per annum from the date of each payment if paid by August 8, 2026. If the deadline is missed, the interest rate will increase to 11.25% per annum until full payment.

Apart from the refund, the Commission awarded ₹2 lakh each to the homebuyers for mental agony and ₹50,000 each towards litigation expenses, taking the total compensation to ₹5 lakh.