The Ernakulam District Consumer Disputes Redressal Commission has ordered real estate developer DLF to pay compensation for delaying the handover of a flat in its New Town Heights project in Kakkanad. The ruling follows a complaint by Seena Susan Kuruvilla and her son Mithun Kuruvilla, highlighting issues of delayed possession, additional charges, and substandard construction quality.
The complainants booked an apartment in May 2010 for Rs 34.29 lakh. The agreement specified that possession would be handed over by January 19, 2013. Despite paying 95% of the agreed amount within the stipulated timeline, the possession was delayed until September 2017, nearly four years later. During this period, DLF demanded and received an additional Rs 10.22 lakh under pressure. Furthermore, an amount of Rs 2.74 lakh was collected for an alleged increase in the apartment’s area during construction.
Beyond financial issues, the complainants raised concerns over the quality of the apartment. They reported inadequate water supply, poor electrical work, and unauthorized withdrawals from their loan account. These issues compounded the distress caused by the delayed possession.
The commission referenced previous Supreme Court rulings, emphasizing that developers cannot indefinitely delay handing over properties. Such delays constitute a serious deficiency in service, and affected consumers are entitled to compensation. In this case, DLF was found guilty of both service deficiencies and unfair trade practices.
To address the financial impact of the delay, the commission ordered DLF to pay interest at 12% on the original flat price of Rs 34.29 lakh for the period from the promised handover date in January 2013 to the actual handover date in September 2017. In addition, DLF must refund Rs 5.76 lakh spent by the complainants on rent due to the delay in possession.
Beyond monetary compensation, the commission also recognized the mental distress and inconvenience suffered by the complainants. A further Rs 1.10 lakh has been ordered as compensation for psychological strain and court costs. The ruling mandates that the amounts be paid within 45 days.
Consumer rights experts note that this ruling reinforces accountability in the real estate sector. Delays in possession are a recurring concern in India’s residential market, often accompanied by unexpected financial demands and compromised construction standards. By recognizing both financial losses and mental distress, the commission has set a precedent emphasizing the dual responsibility of developers: timely delivery and adherence to quality standards.
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