Builder Ordered to Pay Rs 51 Lakh in Refund to Homebuyer for Not Delivering Promised Road

A Gurgaon homebuyer is set to receive a refund of Rs 51.36 lakhs from a builder after the intervention of the National Consumer Disputes Redressal Commission (NCDRC). The complainant sought a refund as the builder, Godrej Projects Development Ltd, failed to deliver their promise of offering a 24-metre road connecting the project. The builder defaulted on providing other essential facilities, such as water supply, as well. The court ordered Godrej Projects to pay Rs 51.26 lakh along with an interest of 9 per cent, reported Moneycontrol


The saga began in August 2014 when the homebuyer booked a house spread in an area of 2324 square feet in the project Godrej Summit. He had inked the builder-buyer agreement in October of the following year. Godrej Projects raised a demand for balance payment from the buyer following the receipt of the occupancy certificate in June 2017.

The buyer decided to make a visit to the site. To his dismay, he found that the unit he bought did not align with the original plan. The 24m road, which was featured in the builder’s advertisements, was non-existent. Other guarantees, prominently the safety measures and proximity to the Dwarka Expressway, were missing, too. On these grounds, the buyer held back on paying the final instalment.

In response, the builder revoked the allotment of the apartment in December 2017 and forfeited the earnest amount of Rs 46.94 lakh.


The complainant turned to the NCDRC for redressal. The Commission stated that the road was not only depicted in the advertisements and buyer agreements but was also crucial in influencing the buyers to purchase the residential unit. The NCDRC also held the builder answerable for ‘deficiency of service’, referring to the absence of regular water supply, electricity supply, and sewerage treatment plant.

The builder argued that there was no fault of service on its part as the construction of the road and provision of drinking water was to be done by the state authorities.

The court, however, said that due to all these considerations, the complainant was justified in seeking a refund of his deposits. The Commission further ordered the developer to refund to the buyer the whole principal amount of Rs.51,36,338. It said that the buyer was also entitled to compensation in the form of simple interest at the rate of 9% p.a. from the date of each payment till the date of refund. In addition, the builder has also been directed to pay Rs 25,000 as the cost of litigation to the complainant within 90 days from the date of the order.

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