NCDRC says builder can’t force buyer to take possession of incomplete flat

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The National Consumer Disputes Redressal Commission (NCDRC) in a ruling has said a homebuyer cannot be forced by a builder to take possession of a flat which is not fully constructed and for which completion certificate has not been issued by the local authority. This, it added would amount to unfair trade practices. The ruling could help consumers who often find themselves in a similar situation, according to a report in The Times Of India.

Delay in construction lasted for more than two years

A Bengaluru-based real estate company was directed by a bench of C Viswanath and Ram Surat Ram Maurya to refund an entire amount of around Rs 3.5 crore with interest to a buyer who refused to take possession of a villa without completion certificate and filed a complaint against the builder. The order was passed by panel after noting that there was delay of more than two years in construction and still the flat was not fully constructed and was not livable.

The panel also said that when the complainant went for taking possession of the flat, the builder had insisted them to sign the paper, which said that they were receiving the possession of the villa in a  fully ready condition, which was an unfair trade practice.

It also said that offering possession with incomplete construction and without obtaining completion certificate does not justify the act of the builder.

In this case, the buyer had booked a 3,900 square feet luxurious flat in 2013. The project was launched by Mantri Technology Constellation Private Limited in Chennai. The builder promised to hand over the villa by May 2015. The buyer had paid all the installments as per the construction-linked plan to the builder.