News: Builders can't sell a dream to flat buyers and not fulfil it: Supreme Court-22-01-2022
NEW DELHI: The Supreme Court on Friday ordered a builder, IREO Pvt Ltd, to refund crores of rupees to flat buyers who wanted refund of their investment as the realtor sold a dream home with Italian marble floor, golf course view and other luxurious amenities to them in the brochure but failed to provide for the promised facilities.
The project 'Skyon' on golf course extension road in Gurugram was delayed by years and when the flat buyers, each of whom had invested in excess of Rs 2 crore, demanded refund, IREO Pvt Ltd threatened to deduct 20% of their invested money. They moved consumer court and were granted refund of the principal money with interest of 10.5% as provided under Haryana RERA.
IREO through Ankur Sehgal appealed against the decision of the NCDRC before the SC. A bench of Justices D Y Chandrachud and Bela M Trivedi asked the builder's counsel whether the promised golf course view was available to the flat owners
Sehgal said that there is a green belt provided by the builder but there was no golf course. The bench said, "You (builder) sell a dream to the home buyers but do not provide the promised amenities. When the promised amenities are not provided, they are entitled to a refund of their investments with interest."
The two complainants, Aloke Anand and Nitin Juneja, through their counsel detailed a long list of breach of promises, which were made in the brochure by the builder. According to the complainant, the project was supposed to be a very high end, one of its kind development and hence, there was a huge premium paid for the property @ 11,600 per square foot as against other properties in the vicinity, which charged Rs 6,500 per sq ft.
They said as per the brochure and apartment buyers agreement executed between the parties, "the project was meant to be a modern, high-efficiency and technology driven project with facilities like smart home automation, hi-speed elevators, sweeping balconies, VRFT air conditioning technology, world-class club with range of recreational and sports options etc. But, there was total deviation from the specifications and the amenities mentioned in the brochure and the apartment buyers agreement and more particularly the absence of golf course as promised, the project was a mid-level project."
The SC agreed that such deviations entitled the flat buyers to demand refund and upheld the NCDRC order. IREO now has to pay back Rs 2.2 crore to one flat buyers and another Rs 4.68 crore, both with interest of 10.5%.
