What Constitutes Inordinate Delay In Real Estate? Here Is NCDRC’s Definition

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    Are you struggling with delayed possession of your dream home? If yes, then here is a ray of hope.

    National Consumer Dispute Redressal Commission (NCDRC) has for the first time defined what constitutes inordinate delay. The body has declared that the consumers can seek a refund if the possession is delayed by “over one year or beyond” the date of delivery promised by the builder.

    The declaration came as a part of consumer court order passed on a plea by Shalabh Nigam, who bought a flat in 2012 in the Greenopolis project located in Gurugram, being constructed by Orris Infrastructure and 3C company. As per the plea, Nigam paid up Rs 90 lakh against the total cost of around Rs 1 crore.

    The consumer was supposed to get the flat within 36 months, with a grace period of six months, from the date of allotment. However, when the builder failed to complete the project, the buyer approached NCDRC, seeking direction for either refund or time-bound possession of the flat.

    The order notes that the project has been delayed by more than two years, and the buyer has the right to seek a refund even when the external development charges and the internal development charges have not been paid by the developers to the authorities, and even the development agreement is not as per the provisions of law.

    “It is now clearly established that the allottees have the right to ask for a refund if the possession is inordinately delayed and particularly beyond one year,” Money Control quoted the court order.

    The case seems of importance as the issue of inordinate delay was not defined by any court until now. The Supreme Court and various consumer courts have been voicing concern for the harassment suffered by the flat buyers over inordinate delay in handing over possession. However, till date, there was no clear time period of seeking redressal.

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