Buyers wait 20 yrs to own flats, gets full refund

A group of Bengaluru homebuyers, led by Manjula Doma Roy Verghese and eleven others, have finally received relief after waiting over 20 years for flats that were never handed over. The National Consumer Disputes Redressal Commission ordered builder Gruha Kalyan Proprietorship Firm to refund the entire amount paid, including interest from the date of each payment.

The buyers had initially paid Rs 1,15,50,000 for flats in the Gruha Kalyan Erica project, but possession was still not granted, prompting their legal action. The commission ruled that the builder's failure to deliver the project on time constituted a deficiency in service, in line with numerous Supreme Court rulings on stalled housing projects.

The order directs the builder to refund all principal amounts with interest at 9% per annum, with a higher rate of 12% if the payment is delayed beyond 45 days. Additionally, the builder must pay Rs 35,50,000 in compensation for the buyers' prolonged harassment and cover the legal expenses incurred by the complainants. This landmark ruling applies to all project allottees, not just the original complainants, and sets a precedent for stalled housing developments.