Give flats or return money: SC to realtors


New Delhi, Oct 20 (DHNS): In a crackdown on real estate developers, the Supreme Court on Wednesday told them to deliver flats on time or return money to the buyers.

The court said they have to live up to their promise of delivering house as per the agreements. The court said developers cannot take refuge under the famous saying “Rome was not built in a day”, and reminded them that “the foundation of any economy is faith and if faith is lost, then everything is lost.”

In a clear message to all builders, a three-judge bench presided over by Justice Dipak Misra observed: “It needs no special emphasis to state that the property developer has to respect the contractual commitment. It has to live up to the terms of the contract and gain trust so that the people who dream of houses can repose faith in him.”

A day after pulling up real estate firm Parsvnath Buildwell Pvt Ltd, the bench, also comprising Justices Amitava Roy and A M Khanwilkar, directed real estate major Unitech to refund the principal cost of flats to 39 buyers who had booked apartments in a Gurgaon project about seven years ago but have still not got possession of their houses.

“The appellant (Unitech) by delaying or procrastinating the completion of the flats cannot base its stand on excuses or any subterfuge to advance the stand that the constructions take time. The submission in a way rests upon the metaphor that ‘Rome was not built in a day,’ but it serves no purpose,” the bench added, noting the anguish of the buyers.

 

  

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Comment on this article

  • Vincent Rodrigues., Frazer Town,Bangalore

    Thu, Oct 20 2016

    This is a good decision of the Supreme Court and the hard earned money of the people is blocked in housing and many are panic in not completing the flats/house on agreed time

    DisAgree Agree [1] Reply Report Abuse

  • sid, mangalore

    Thu, Oct 20 2016

    same needs to be done by the government . Its more than 5 years since our land was acquired for BUS STOP in Pumwell region . Our land is lost and the area is a mess with no sign of the so called BUS stop . Can we get our land back ?? Same rule should apply for the Government right. Its time Government gives quality products and in a time frame ??

    DisAgree Agree [1] Reply Report Abuse

  • John R Lobo, Kaikamba

    Thu, Oct 20 2016

    Readers please read carefully and beware of Real Estate Tricks....

    Buyers cant get back their BLACK MONEY Which they paid by cash. For that Builder never giving any receipts. If you follow SC judgement again Buyers are losers NOT builders. Builders will return only White amount and Buyers cant file case for Full Payment..

    DisAgree Agree [10] Reply Report Abuse

  • sudhi, byndoor

    Thu, Oct 20 2016

    yes. when customers go for booking, the staff or the owner will inform them the rate and tell them to pay minimum 30 percent in cash to save service tax fee, VAT, Registration Fees etc. So customers easily agree to pay cash and the rest is paid in cheque. if customer refuses to pay in cash then his proposal is most probably be rejected. Here if the customer wants to cancel or if the bldr delays then customer has no proof to prove the cash paid money.

    DisAgree Agree Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Thu, Oct 20 2016

    Builders will be very happy to return money because by now price of that property has become 4 x.
    Indian Laws always favor the rich ...

    DisAgree [2] Agree [16] Reply Report Abuse

  • geoffrey , hat hill

    Thu, Oct 20 2016

    To counter that interest should be levied accordingly.

    DisAgree Agree [13] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Thu, Oct 20 2016

    who will bell these buffaloes ...

    DisAgree [2] Agree [8] Reply Report Abuse

  • Indian, INDIA

    Thu, Oct 20 2016

    U are mistaken for last 3 years property rates are stagnant besides v few people are investing in underconstruction project in big cities like Delhi Mumbai Navi Mumbai. builders are time and again advertising for discounts and subvention schemes but somehow they are not able to complete projects on time. Builders are v cunning, 90% of the amount is taken from investors just for slab work and brickwork remaining 10% possession time it goes on forever min. 4-5 years while investor's housing loan and EMIs begin. Banks offer loans and start EMIs from common man but do not actually protect them when projects are not completed on time. This clause is v imp. or builder should return hard earned money with interest i.e. EMI interest.

    DisAgree Agree [10] Reply Report Abuse

  • John, Udupi

    Thu, Oct 20 2016

    Whether this judgement is applicable to Modiji who made several promises before elections and took away our votes but now failed to deliver saying economy economy economy........!!!!!!

    DisAgree [10] Agree [20] Reply Report Abuse

  • Shankar, Mangalore

    Thu, Oct 20 2016

    Have a lemonade dude.
    Then read the article and comment.

    DisAgree [12] Agree [6] Reply Report Abuse

  • sid, mangalore

    Thu, Oct 20 2016

    ha ha you voted ??? i am sure you would not change your vote even if there is a candidate worse than rahul ghandhi

    DisAgree Agree Reply Report Abuse


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