NCDRC says Buyers can seek higher compensation than Rs 5 per sq.ft.

real estateRecently, in Punjab, the commission directed the builder to pay Rs 5 lakh compensation over and above the refund amount for inordinate delay in handing over a flat along with it Rs 50,000 litigation cost.

Now the builders can’t walk off by just paying Rs 5 per sq ft month as a compensation for delay in handing over flats for “unreasonable” period and the buyers have the option to seek higher compensation after taking possession of the property or seek a refund of the amount paid by the rules of builder-buyer agreement.

The compensation would also be in addition to the refund amount with interest and the compensation amount is Rs 5 per sq ft per month. The builders just cannot delay the possession unreasonably and they can compensate for delay by paying the indefinite amount.

The compensation for the delay due to no valid reasons cannot continue forever limit said officials. The compensation according to all buyer-builder agreements is “Rs 5 per sq ft” for the delay in possession. It is a disadvantage for consumers because the builders challenge the order in the NCDRC.

But now as the national commission said the consumer have the fundamental option to obtain possession of the unit and in addition seek just compensation under the Consumer Protection Act for unreasonable delay. The NCDRC says that consumers has the other option to claim the refund of the principal amount; interest thereon; compensation; and cost of litigation.

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