Caught Double-Dipping? Developer Forced to Refund Buyer After Reselling Apartment.
03 June 2024
Consumer Protection Act >> Consumer Rights
In a recent consumer court case, an apartment buyer won a dispute against a builder regarding a delayed project. The buyer, who had signed an agreement in December 2008, faced several issues with the purchase.
The agreement stipulated a 36-month timeline for the builder to hand over possession of the apartment. However, the project faced delays, and the buyer stopped making some payments due to these issues. The builder, on the other hand, demanded interest on the delayed payments and threatened to cancel the agreement altogether. Additionally, the builder increased the overall cost of the apartment.
Despite the delays, the project was completed in late 2011 or early 2012, and the builder received an occupancy certificate in August 2012. Surprisingly, the builder then sold the apartment to a third party in February 2015, for a significantly higher price than what the original buyer had agreed to pay.
Dissatisfied with the experience, the buyer filed a consumer complaint against the builder. The complaint cited the delays, unreasonable cost increases, and the imposition of interest on delayed payments due to the builder's own shortcomings. The buyer sought a refund of the entire amount paid along with interest and compensation for the inconvenience caused.
The court ruled in favour of the buyer and directed the builder to refund the principal amount paid (with a minor correction to the exact amount) and pay interest at a specific rate on the refunded sum. The court essentially acknowledged that the builder was responsible for the delays and could not penalize the buyer with interest for their own missteps.