After real estate developers Unitech failed to deliver 10 flats booked by Gannon Dunkerley Limited, the National Consumer Disputes Redressal Commission (NCDRC) directed the developers to refund the entire amount that the complainant had paid, along with an interest of 10% within a period of three months.
Further, the commission stated that the aggrieved company was a ‘consumer’ as the flats, which were worth over ₹1 crore each, had been booked for residential purpose of its employees.
‘Homes not handed over’
It had been alleged that close to 10 flats had been booked by Gannon Dunkerley in the project called ‘Unitech Harmony’ which was being developed by Unitech at Nirvana Country in Gurugram, to be used for residential purposes by its employees.
Further, it was alleged that despite having paid ‘the major part of the agreed sale consideration’, the flats, which was to be delivered in 2009, had still not been handed over.
‘Commercial purposes’
In their defence, the developers contended that the complainant could not be considered a ‘consumer’ as the flats were booked for ‘commercial purposes’.
However, citing previous judgments, the apex consumer disputes redressal forum said: “It would thus, be seen that if a flat is booked by a company for the residence of its employees, it cannot be said that the services were hired or availed for a commercial purpose.”
Further, the national consumer panel said, “There is no evidence of the complainant having booked these flats for speculative purposes such as making profit by selling the same at a higher price or even for the purpose of earning rental income by letting out the same to outsiders. The residences meant to be used as staff quarters are not meant for any particular employee and can be allotted by the employer to any employee.”
Delaying factors
The developers claimed that the delay in the delivery of possession was because of factors like recession and unavailability of raw material.
However, the forum dismissed these reasons as well.
Directing Unitech developers to refund the entire amount invested by the Gannon Dunkerley, the consumer forum also ordered a payment of ₹25,000 as litigation charges for each of the 10 complaints.
