Delhi High Court directs NBCC to return entire money to aggrieved home buyer and orders compensation of ₹5 Lakh for mental anguish

The Delhi High Court has directed the National Buildings Construction Corporation (NBCC) to refund the entire amount of over Rs. 76 lakh deposited by a home buyer in 2017 regarding a flat that was never handed over to him, noting that he was completely let down.

Justice Subramonium Prasad noted that purchasing a home is one of the most important investments an individual or family makes in their lives and often involves years of savings, careful planning and emotional investments.

The court ordered NBCC to refund the full amount paid by the litigant within six weeks, together with interest @ 12% from January 30, 2021 (the date the possession certificate was issued) till today.

“If builders of such homes fail to deliver what is promised, they destroy the confidence and financial security of homebuyers and also place homebuyers in a situation where they may face enormous stress, anxiety and uncertainty and ultimately be forced to be forced to navigate legal channels to seek redress. “, the court said.

It added the emotional toll of living in limbo, unsure of the future of their investment and the stability of their living situation cannot be underestimated.

Noting that compensating aggrieved homebuyers is not only a matter of righting past wrongs but also deterring future wrongdoing, the court ordered the NBCC to pay Rs.5 lakh to the litigant.

The petition was filed as the flat was not delivered to the litigant even after six years of the last installment and about ten years after the first application fee was paid.

The NBCC opposed the plea stating that the litigant had approached different forums for the same relief and he was not allowed to engage in forum shopping.

Accepting the plea, Justice Prasad said it was a classic case of extreme hardship faced by a homebuyer who had to run from pillar to post after spending his entire savings.

“It is unfortunate that a ‘State’ has raised the objection under Article 12 of the Constitution of India that the petitioner is guilty of forum shopping,” the court said.

It added that the litigant’s act of approaching various forums was borne out of his desperation rather than strategic pursuit of a favorable diktat.

“Considering that the petitioner has been deprived of his money for the past ten years, structurally defective houses have been built by the NBCC, the petitioner has been completely abandoned, the refusal of the respondent, which is a State, to pay interest on the amounts entrusted by her to the petitioners and the unwillingness to ensure that the petitioner is effectively rehabilitated, the respondent must be dealt with severely,” the court said.

Counsel for the petitioners: Mr. Raghav Vij, Mr. GS Rana and Mr. Saurabh Kaushal, Advocates

Counsel for Respondents: Mr. Arvind Minocha, Senior Advocate, with Mr. Ray Vikram Nath, Mr. Akshat Chaudhary and Mr. Harshvardhan Jha, Advocates; Mr. Chiranjiv Kumar, Mr. Mukesh Sachdeva and Mrs. Neelima, advocates for the Union of India

Title: SANJAY RAGHUNATH PIPLANI AND ANR. v. NATIONAL BUILDINGS CONSTRUCTION CORPORATION DELHI AND ANR.

Click here to read the order