NCDRC orders ND Developers to refund homebuyers for delivery delays.

BENGALURU: The National Consumer Disputes Redressal Commission (NCDRC) has ordered city-based ND Developers to refund home buyers’ money plus 9% interest for failing to deliver the flats on time.

On March 31, 2011, more than 50 homebuyers decided to book flats at ND Laurel, a housing project at Gunjur, near Varthur in Bengaluru East, according to a complaint filed with the NCDRC against ND Developers Pvt Ltd and five others.

According to the agreement, ND Developers Pvt Ltd was required to provide legal possession of the flats with all did promised amenities and facilities to the home buyers by December 2012, with a four-month grace period, i.e. by March 2013. However, even after the deadline, the company failed to deliver the flats to the home buyers.

According to reports, the builder failed to obtain the occupancy certificate (OC) for the unfinished flats handed over to some of the buyers. According to reports, 24 of the 55 homebuyers received incomplete flats but did not receive occupancy certificates from the builder.

The NCDRC, chaired by presiding member Binoy Kumar and member Sudip Ahluwalia, has directed the opposing parties (ND Developers and land owners) to refund the entire amount deposited by the complainants, as well as delay compensation at 9% per annum on the deposited amount from the respective dates of deposits until realization, within two months.

“Any delay of more than two months will result in a 12% annual interest rate for the same period,” the NCDRC stated.

It has also directed the builder to complete the construction of the flats allotted to the complainants (24 home buyers) in all respects, obtaining the necessary OC at its own cost and responsibility, and offering possession of the flats to the complainants within six months along with delay compensation at 8% per annum from the proposed date of possession as per the respective agreements, which will include the grace period, until the offer of possession or obtaining OC.

“Any delay beyond two months will attract an interest rate of 12% per annum for the same period.”Any pending applications have been disposed of,” the NCDRC stated.

Home buyers have applauded the NCDRC decision and expect the builder to finish all outstanding work for those who have already taken possession of the flats. “I am very pleased with the NCDRC decision. I’ve been waiting for ten years to take possession of the flat. It’s a good decision,” said Santosh Krishnamurthy, one of the home buyers who complained to the NCDRC.