Cases against builders are pouring after disputes commission begins penalising

In the backdrop of National Consumer Disputes Redressal Commission (NCDRC) penalising builders such as Jaypee, Lodha Group, Unitech over project delays, home buyers have got a hope that their grievances will also be heard now.

Cases against builders are flooding now after NCDRC penalised Jaypee for delaying its Kalypso Court project in Noida.

The disputes commission has told Jaypee to pay 12% interest for the delay and to complete the project by July 21. In case Jaypee fails to do so, it will have to pay Rs 5,000 per day per home as a penalty till it hands over homes to the buyers.

Earlier, Mumbai-based builder Lodha group was also told to refund Rs 1.02 crore to a buyer with 18% interest.

Even Parsvnath Developers refunded the entire amount paid by around 70 home buyers in its Parsvnath Exotica project in Ghaziabad with 12% interest for failing to complete the apartments on time.

"It is positive that NCDRC is giving enhanced compensation that will not just encourage home buyers to come forward but also act as a deterrent to builders," lawyer Sahil Sethi, who is handling cases against Jaypee projects, told ET.

Lawyers say due to increase in these realty cases, the hearing time has also increased from two to three days to at least 25 days.

Dharmesh Jain, president of developers' body MCHI-CREDAI, told ET, "Delay doesn't benefit anyone, be it homebuyers, developers or even the government. Homebuyers, by all means, should approach authorities if there is a case of deliberate delay. But if the reason for such delay is permissions then that also needs to be considered.”

Industry experts point out that most of the projects get delayed by a year and even two years.

Meanwhile, home buyers have also been organising protests over delays, for instance, in Gurgaon, the Emerald Hills Owners Welfare Association held a protest against builder Emaar MGF for delaying possession.

(Image: Reuters)