Rs 19.62 Lakh Paid, But No Flat; Consumer Commission Orders Builder To Compensate Homebuyer

A delay In handing over a residential flat despite the buyer paying the agreed sale amount has prompted a consumer commission in Haryana to order the builder to deliver possession and pay 9 per cent annual interest on Rs 19.62 lakh from November 24, 2018.

The matter concerns a 73-year-old buyer who was allotted Flat No. C-704 in Tower-C of Shree Vardhman Green Space, Sector-14, Panchkula Extension-II, on August 26, 2015. The parties entered into a Flat Buyer’s Agreement on March 21, 2016, with the basic sale price set at Rs 19.62 lakh.

What Was The Dispute Over The Delayed Flat Possession

According to a report by The Times of India, Girdhari said he had paid the required amount to Green Space Infraheights Pvt Ltd and arranged a Rs 17.65 lakh housing loan from PNB Housing Finance for the purchase. He claimed that the builder did not provide possession within the promised timeframe, which left him to continue carrying the loan burden without access to the property.

The project was marketed under the Haryana government’s Affordable Housing Policy, 2013, which prescribed a timeline for completion. Girdhari alleged that the delay caused financial hardship and sought relief for income loss, mental distress, loan-related payments and litigation expenses.

The builder contested the allegations, saying the home buyer had not cleared instalments on schedule. It referred to reminders sent to Girdhari over pending payments and argued that his payment defaults contributed to the delay. The builder also cited disruption caused by the COVID-19 pandemic and invoked the force majeure provision in the agreement.

What Did The Consumer Commission Observe

The commission examined the payment records and found that they did not support the builder’s position. Its customer ledger showed that Girdhari had already paid the full basic sale consideration of Rs 19.62 lakh by November 24, 2018. The record also showed total payments of Rs 20,47,435.

While examining the possession timeline, the commission observed that possession was due by March 2019, even if the calculation was made from the date of the Flat Buyer's Agreement. It therefore did not accept the builder’s reliance on COVID-19, as the contractual deadline had passed before the nationwide lockdown began in March 2020.

The commission also examined the buyer’s claim that the builder had agreed to cover his housing loan interest until possession. While records showed that Girdhari had received Rs 2,46,855 from the builder, the commission found no separate written undertaking requiring the builder to pay all future EMIs or interest.

The commission concluded that the continued failure to provide possession amounted to a deficiency in service and an unfair trade practice. It also took into consideration that Girdhari was a senior citizen and had already paid the entire basic sale consideration.

The builder was ordered to finish any outstanding construction or development work and hand over actual, physical and peaceful possession of the flat within 30 days. It was also directed to pay 9 per cent annual interest on Rs 19.62 lakh from November 24, 2018, until possession is delivered.

Also, the commission awarded Rs 2 lakh for mental agony, harassment, financial inconvenience and deficiency in service, along with Rs 10,000 towards litigation expenses. The builder was also asked to inform the buyer within 15 days about any registration charges payable by him under applicable law.