Sanchar Nest Sahkari Awas Samiti Ltd Directed to Refund Over Rs. 79 Lakh with Interest and Compensation for 15-Year Delay
In a significant judgment, the Delhi State Consumer Disputes Redressal Commission has ruled in favor of Mr. Parmod Kumar Mahopatra and other complainants, ordering Sanchar Nest Sahkari Awas Samiti Ltd to refund the amounts paid towards flat bookings, along with interest and compensation for mental agony. The case, filed in 2024, addressed the prolonged delay in handing over possession of flats by the cooperative housing society, which spanned over 15 years.
The Commission, presided by Sangita Dhingra Sehgal and member Ms. Bimla Kumari, concluded that the housing society's failure to deliver the flats constituted a deficiency in service under the Consumer Protection Act, 2019. The judgment emphasized that cooperative societies providing housing services for consideration qualify as service providers, and the complainants fall under the definition of 'Consumer'.
The complainants had initially become members of the society in 2010, with assurances of receiving flat possession by 2012. However, due to various delays, including disputes over land and subsequent project transfers, the possession was never realized. Despite repeated financial demands from the society, the flats remained incomplete, leading to the filing of the consumer complaint.
The Commission rejected the society's arguments that the complainants were not consumers and that the complaint was not maintainable due to existing remedies under the Uttar Pradesh Cooperative Societies Act. It also dismissed the claim that the complaint was barred by limitation, citing the continuous nature of the wrong due to non-delivery of possession.
In its order, the Commission directed the society to refund Rs. 39,08,865 to Complainant No.1 and Rs. 40,34,234 to Complainant No.2, with interest at 8.25% per annum from the date of payment till the judgment date. The society was also ordered to pay Rs. 4,00,000 as compensation for mental agony and Rs. 1,00,000 as litigation costs.
The judgment underscores the accountability of housing societies in adhering to promised timelines and the legal recourse available to consumers under the Consumer Protection Act, reinforcing the rights of homebuyers to seek redress for deficient services.
Bottom line:-
Consumer Protection Act - Delay in possession of flats by a cooperative housing society constitutes deficiency of service. Refund with interest and compensation awarded to the complainants for mental agony and harassment caused due to delay.
Statutory provision(s): Consumer Protection Act, 2019 Sections 2(7), 2(31), 35, 69, 2(5)(v), 47(1)(a)(i)
