Delhi consumer forum orders refund, ₹5 lakh compensation to 2 homebuyers for 15-year delay in flat possession

The Delhi State Consumer Disputes Redressal Commission recently ordered a Ghaziabad-based cooperative housing society to refund ₹79.43 lakh with interest to two homebuyers, along with ₹5 lakh in compensation for mental agony and litigation costs, over its failure to deliver possession of flats booked over 15 years ago [Pramod Kumar & Anr v. Sanchar Nest Sahkari Awas Samiti Ltd]..A coram of Justice Sangita Dhingra Sehgal (President) and Bimla Kumari (member) found the society guilty of deficiency in service and unfair conduct in a long-delayed housing project.The Commission noted that despite substantial payments made over the years, including through home loans, the buyers were neither given possession nor refunded their money. "The Opposite Party (the housing society) was deficient in rendering services to the Complainants (home buyers) by failing to hand over possession of the flats within a reasonable period and kept the amounts deposited by the Complainants for almost sixteen years from the date of agreements," it observed..The case arose from bookings made in 2010 for 3BHK flats in a project initially proposed in Noida, with possession promised by 2012. However, following alleged disputes over land, the project was shifted to another site in Ghaziabad, with revised costs and fresh agreements executed in 2013. Even then, construction remained incomplete for years, while the society continued raising demands under various heads.Highlighting this pattern, the Commission said, "The Opposite Party (the housing society) continued extending the date of completion and simultaneously raised additional demands under different heads, thereby increasing the financial burden upon the Complainants (home buyers). It is also evident that while the Complainants duly fulfilled their obligations by making payments as demanded and by availing loan facilities for the said purpose, the Opposite Party failed to fulfil its obligation of delivering possession of the flats within a reasonable period of 42 to 48 months from the date of the Agreements despite receipt of the aforesaid substantial amount.".Rejecting the society’s objections, the Commission held that a cooperative housing society can be treated as a “service provider” if it undertakes construction for buyers. It clarified that homebuyers are free to approach consumer forums even if remedies are available under real estate laws. It further held that the failure to deliver possession constitutes a continuing cause of action..The Commission also dismissed the society’s explanations for the delay, such as land disputes, rising costs, environmental restrictions and the COVID-19 pandemic. It noted that no supporting evidence was provided and that the project had already been delayed well before the pandemic..Directing a refund, the Commission ordered the society to return ₹39,08,865 to one homebuyer and ₹40,34,234 to the other, aggregating to ₹79,43,099. The amounts will carry interest at 8.25% per annum (linked to the home loan rate) from the date of each individual payment until June 8, provided the refund is made on or before August 8, 2026. Failing this, a higher interest rate of 11.25% per annum will apply until full realization.Additionally, the Commission awarded ₹2 lakh each for mental agony and ₹50,000 each as litigation costs, totalling ₹5 lakh in compensation..Advocate Sarvesh Roy appeared for the homebuyers (complainants).Advocate Sumit Kumar represented the housing society (opposite party)..[Read Judgment]