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Home sweet home

real estate developers cannot charge escalation fee from buyers on the pretext of delayed projects.

By Rakesh Rai | Print Edition: May 31, 2007

1993Sood books a flat for Rs 13 lakh; promised possession by 1996
1998DLF demands Rs 4.2 lakh more as escalation charges. Parking price also doubled. Sood has to go for an additional loan
1999Sood gets possession in November; pays Rs 1.6 lakh as registration fee and stamp duty
2000Sood moves State Commission,Haryana, alleging unfair trade practices by DLF
2007NCDRC directs DLF to pay Rs 1 lakh compensation to Sood
In a judgement that could weaken the strong-arm tactics used by builders against home buyers, the National Consumer Dispute Redressal Commission (NCDRC) has ruled that real estate developers cannot charge escalation fee from buyers on the pretext of delayed projects and pending permission from the government.

Hearing a case filed by retired army man Kamal Sood, the two-judge bench directed DLF Universal to pay Rs 1 lakh compensation to Sood and refund the escalation charges and registration fee. DLF can challenge the decision in the Supreme Court.

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