SC to builders: deliver possession on time or go to jail
The Supreme Court came down heavily against the erring builders & developers how mighty big they may be in case they fail to deliver possession on time to the small time investors.
The Court has directed the real estate giant Unitech to deposit Rs. Five crores with the registry of the court. The reason for such an order is that Unitech Ltd has failed to give the possession of the apartments within stipulated time of three years at Noida.
In agreement with the buyers, the Unitech Ltd. has promised to complete the entire project by April 2013 and will deliver the physical possession of each unit booked by them.
The observation came from the bench comprising of Justice Dipak Misra & Justice C. Nagappan, who has also given the warning to the Unitech to deposit the entire amount before August 12, 2016; Otherwise, all the directors will be sent to judicial custody.
The Unitech Ltd. has challenged the order dated October 12, 2015, of National Consumer Disputes Redressal Commission, wherein the commission has directed them to pay compensation & litigation cost for the delay in giving possession of three flats at Noida. The Apex Consumer Commission has also directed the Unitech to handover the possession of the flats booked by Diwarkar Mishra and others before October 2017.
Despite paying more than 95% of the total amount of the agreed sale consideration to the Unitech Ltd, when the possession was not given to the buyers on time within three years of its booking, and the construction is far from complete, the complainants approached the State Commission for their grievance.
Advocate Pradeep Sharma, leading consumer lawyer at Chandigarh, said that the order of the Supreme Court would act as the eye opener for other builders & developers who also don’t give possession on time and keep on delaying the project for years.
The flats were in Sector 96 of Noida, and the complainants have already made the payment of Rs. 3.8 crore per flat to the Unitech.
Now after this verdict, the innocent buyers across the nation will force the builders to complete the project on time. Otherwise, they have the option of taking the legal recourse.