NCDRC Directed Mahindra Life Space Developers To Pay Delayed Compensation With An Interest On The Deposit Of The Home Buyer

The National Consumer Dispute Redressal Commission in the case Alok Ranjan Sinha & Anr v Mahindra Life space Developers Ltd, wherein the bench comprising of the Presiding Member, Justice Ram Surat Ram Maurya and Dr. Inder Jit Singh as member has directed Mahindra Life space Developers to pay the delayed compensation on the home deposit which is to be paid by the complainants at an interest rate of 6% p.a.

However, the bench was hearing a complaint against Mahindra life space developers (Opposite party) for alleging delay in possession. In the present case, the opposite party is being engaged in the business of development and construction of group housing project. A project has been launched by them in the name of ‘Mahindra Aura’at a village called Chouma in Gurgaon in the year 2011. In the project, the complainants booked a residence and the booking amount has been paid. An apartment was being allotted to them and an apartment buyer agreement was executed by the opposite party for the same flat.

Thus, the construction linked payment plan was opted for the agreement and most importantly, it has been provided under Clause 15 of this agreement a 32-month period from the start of construction for delivery of possession and the due date of 04.10.2014 was being surpassed and the same was offered in the latter half of the year 2016. It has been submitted by the opposite party before the commission that under the apartment buyer’s agreement, the delayed compensation was agreed to be @ Rs. 5/- per sq.ft. per month.

It was also submitted before the court that they are not being entitled for the rent paid by the complainants. Therefore, the bench in the case referred to the decisions of the Hon’ble Supreme Court in the case Wg. Cdr. Arifur Rehman Khan & Ors.Vs. DLF Southern Homes Pvt. Ltd. The Court in the said decision held that the delayed compensation @7.5 per sq. ft. p.m. was inadequate and fixed delayed compensation in the form of interest @6% per annum on the deposit of the home buyer.

The counsel appearing for the opposite party also highlighted that the complainant has asked for a compensation of Rs. 5/- per sq. ft. p.m. this amount has been paid and hence this court can grant no further amount. At the outset, it has been observed by the bench that the complainants have also prayed for reimbursement of rent @Rs.24,080/- per month for the delayed period. Therefore, the bench observed that delayed compensation can be provided as per the terms of the case Wg. Cdr. Arifur Rehman Khan & Ors.Vs. DLF Southern Homes Pvt. Ltd. The bench while considering the facts and circumstances, directed Mahindra Life space Developers to pay delayed compensation on the home deposit being paid by the complainants at an interest rate of 6% p.a. this compensation is to be paid within a period of 2 months from the date of the order