Why NCDRC ordered Godrej Projects to refund ₹4 crore to homebuyers

The National Consumer Disputes Redressal Commission (NCDRC) recently ordered Godrej Projects, a subsidiary of Godrej Properties, to refund approximately ₹4 crore to a group of homebuyers after the developer failed to construct internal roads and provide essential amenities in a Gurugram project..A Coram of Presiding Member Justice Ram Surat Ram Maurya and Member Bharatkumar Pandya observed that the developer must be held accountable for its representation.."The developer must be held accountable to its representation. A flat purchaser who invests in a flat does so on an assessment of its potential. The amenities which the builder has committed to provide impinge on the quality of life for the families of purchasers and the potential for appreciation in the value of the flat. The representation held out by the developer cannot be dismissed as chaff," the orders dated October 11 stated..The buyers had booked residential units with the expectation that these facilities would be completed within the stipulated timeframe. However, seven years later, the promised infrastructure was still incomplete, prompting the buyers to approach the NCDRC.The homebuyers argued that Godrej Projects failed to provide the promised internal roads and other infrastructure within the period agreed upon by the parties.They claimed that these delays had caused them financial strain, forced them to make alternative living arrangements and led to significant mental harassment. They sought a full refund of their payments, along with interest and compensation for the inconvenience and stress..The developer countered by stating that delays in the completion of infrastructure, including the roads were due to factors beyond its control, such as delays in obtaining external approvals from local authorities. It claimed that these issues were communicated to the buyers and efforts were being made to complete the work. They argued that the delays were not a result of negligence but rather unavoidable circumstances. The developer also asserted that the buyers could wait for the completion rather than seek a refund..NCDRC dismissed the developer’s defense, noting that the delays could not be solely attributed to external factors. The Commission held that Godrej Projects failed to demonstrate that it had taken sufficient steps to expedite the construction of the internal roads and other critical infrastructure. It highlighted that such amenities were essential to the buyers’ use of the property, and the developer’s failure to provide them amounted to a breach of contract.The prolonged delay was deemed unjustified, with the Commission stressing that buyers cannot be expected to wait indefinitely for a livable property..Accordingly, NCDRC ruled in favor of the homebuyers, ordering Godrej Projects to refund approximately ₹4 crore to five homebuyers along with 9% interest per annum from the date of the deposit..The complainants were represented by advocates Aditya Parolia, Sumbul Ismail, Pranjal Mishra, Anvita Priyadrashi and Ishita Singh..Godrej Projects was represented by Senior Advocate Sudhir Makkar along with advocates Kapil Madan, Aadhya, Akshit Narula and Mayank Goel..[Read Orders]