Flats promised by 2012, paid over ₹79 lakh, yet no possession: Noida buyers win 16-year legal battle

Two Delhi-NCR professionals booked homes in 2010, expecting to receive possession within two years. Instead, they spent nearly 16 years paying loan instalments and meeting repeated payment demands without getting their flats.

The Delhi State Consumer Disputes Redressal Commission has now directed the cooperative housing society behind the project to return more than ₹79 lakh to the two buyers, along with interest, compensation and legal expenses.

The buyers had approached the commission in March 2024 after the society failed to deliver the properties despite collecting substantially more than the prices initially agreed upon.

Project moved from Noida to Ghaziabad

The two colleagues had applied for three-bedroom flats in a cooperative housing project proposed in Noida and became members of the society in 2010.

One flat was initially priced at ₹24 lakh, while the other cost ₹26.60 lakh. Possession was promised by 2012.

The project was later shifted to Ghaziabad following disputes concerning the original land. Fresh agreements were executed in 2013, with the price of each flat revised to ₹28.78 lakh.

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The buyers alleged that the society continued extending the construction timeline while demanding additional payments under several heads.

These included parking fees, escalation charges, GST, service tax, mechanical ventilation costs, smoke detector charges and miscellaneous expenses.

To meet the rising demands, both buyers took additional and top-up loans in 2018.

Payments crossed ₹39 lakh each

Despite making the required payments, the buyers did not receive allotment letters until June 2019 — nearly six years after signing the revised agreements.

Possession was still not offered.

By the time they approached the consumer commission, one buyer had paid ₹39,08,865, while the other had deposited ₹40,34,234. Their combined payment stood at ₹79,43,099.

The commission noted that the buyers had continued fulfilling their financial commitments even as the society repeatedly revised the project deadline and raised fresh demands.

“It is also evident that while the complainants duly fulfilled their obligations by making payments as demanded and by availing loan facilities for the said purpose, the Opposite Party (the housing society) failed to fulfil its obligation of delivering possession of the flats within a reasonable period of 42-48 months from the date of the agreements,” the commission said.

Society held liable for deficiency in service

The housing society argued that it could not be treated as a service provider under consumer law.

A bench comprising Justice Sangita Dhingra Sehgal and Bimla Kumari rejected that contention and held that a cooperative housing society providing homes to its members falls within the scope of a service provider.

The commission consequently found the society guilty of deficiency in service.

It also rejected the explanations offered for the delay, including land-related disputes, rising construction costs, environmental restrictions and disruption caused by the Covid-19 pandemic.

The bench said the society had not submitted sufficient documents to establish that these factors justified the prolonged delay.

“In the absence of any supporting evidence, the said contention cannot be accepted,” the commission stated.

Refund ordered with 8.25% interest

The commission directed the society to refund ₹39,08,865 to one buyer and ₹40,34,234 to the other.

The amount will carry interest at 8.25% a year, calculated from the dates on which the society received each payment until June 8, 2026.

“The Opposite Party (the housing society) was deficient in rendering services to the Complainants (the homebuyers) by failing to hand over possession of the flats within a reasonable period and kept the amounts deposited by the Complainants for almost sixteen years,” it said.

The society has been given until August 8, 2026, to complete the refund. Failure to meet that deadline will raise the applicable interest rate to 11.25% a year until the entire amount is paid.

Compensation for mental agony and legal costs

Apart from the refund and interest, the commission awarded total compensation of ₹4 lakh for the mental agony suffered by the buyers, amounting to ₹2 lakh each.

It also directed the society to pay ₹1 lakh towards litigation expenses, or ₹50,000 to each complainant.