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Builders can’t force buyers to take possession of incomplete property: NCDRC

A homebuyer cannot be forced by the builder to take possession of a flat that is not fully constructed and for which a completion certificate has not been issued. The National Consumer Disputes Redressal Commission in a ruling said doing so will amount to unfair trade practice by the builder.

The bench of C Viswanath and Ram Surat Maurya directed a Bengaluru-based real estate company to refund the entire amount of Rs 3.5 crore to a buyer who refused to take possession of an under-construction villa for which the completion certificate was not issued. The buyer filed a complaint against the builder. The bench passed the judgement noting that there was a delay of over 2 years in the construction of the proposed property and it was not livable when the builder tried to hand over the same to the buyer.

When the complainant went to take possession, the builder insisted they sign a paper that said they are receiving the possession of the villa in fully ready condition. The builder said the key of the property will be handed over only if the buyer signs the document. “This wasn’t a fair trade practice. Offering possession with incomplete construction and without obtaining a completion certificate does not justify the act of the builder,” it said.

In this particular case, buyers Suman Kumar Jha and Pratibha Jha had booked in 2013 a 3,900 square feet luxurious villa in the project launched by Mantri Technology Constellation Private Limited in Chennai. The builder had promised to hand over the possession of flat by May 2015. The buyers had paid all instalments as per the construction-linked plan to the builder. Source: TimesNow News