Consumer forum directs Vatika to refund NRI buyers' money for delay in delivery of flat
The commission has directed Vatika Ltd to return Rs 6.5 lakh earnest money with 12% interest to the Oman-based NRI couple
NEW DELHI: The country’s apex consumer commission has come to the rescue of an NRI couple, who had been fighting legal battle for the past seven years to get back money they had paid to a real estate major, which failed to hand over two flats in time.
The commission has directed Vatika Ltd to return Rs 6.5 lakh earnest money with 12% interest to the Oman-based NRI couple. Upholding the order of Rajasthan Consumer Commission order, the single-member bench of National Consumer Disputes Redressal Commission (NCDRC) of M Shreesha also dismissed the builder’s argument that the buyers were “investors” and hence they did not fall under the ambit of consumers.
The commission also decided that the buyers had the option to either take possession or seek refund for delay in completion and handing over of the flat and non-adherence of time-limit was the builder’s fault. Shaleen Chugh and his wife Gargi had booked two flats offered by Vatika in June 2007 and had deposited Rs 6.41 lakh.
They had also taken a loan from a bank after signing an agreement with the builder that the flats would be delivered in three years. The agreement said the builder would return the earnest money with 18% annual interest for failing to meet the deadline. Chugh had complained that the builder had failed to provide information regarding the occupation till May, 2011 and due to this they could not pay the loan amount to the bank.
The couple approached the district consumer forum seeking the refund. But builder claimed that the buyers had not paid Rs 4.57 lakh despite repeated reminders. It had also submitted that the project was too large and it was delayed because of factors beyond their control.
The forum ordered the builder to refund the earnest amount with interest and Rs 21,500 as processing fee. But the builder challenged the order in state commission, which upheld the order. The spokesperson of Vatika Ltd denied comment citing Wednesday as a holiday on account of Shivratri.