The Delhi High Court ordered the National Buildings Construction Corporation (NBCC) to pay Rs 5 lakh to a homebuyer for putting him through extreme mental agony.
During the proceedings, Justice Subramonium Prasad said that mental distress was caused to the homebuyer after NBCC failed to refund his money with interest even though structural defects were found in the building project he had invested in.
Subsequently, the court directed the NBCC to refund the entire amount of Rs 76 lakh paid by the homebuyer, along with interest at the rate of 12 percent from January 30, 2021, when the possession certificate was issued.
The bench also observed that this is a classic case where a homebuyer has been made to run from pillar to post after having spent his entire life savings on buying a home. It called the stand of the NBCC, a Central government owned public sector undertaking, as unfortunate.
The judge stated that a homebuyer like the petitioner has to fight with his back to the wall, as he has no accommodation and no life savings because it has all been sunk into purchasing a house.
The High Court noted that the total consideration for the flat was paid in 2017, and that there are structural defects in the building constructed by the NBCC, because of which the homebuyer was left in the lurch. It added that the NBCC cannot deny paying interest on the money which was paid by the homebuyer and such an act should be dealt with severely.
Justice Prasad further remarked that purchasing a house is one of the most significant investments an individual or family makes in their lifetime, and involves years of savings, meticulous planning and emotional investment.
The court remarked that when builders of such homes fail to deliver what was promised, they shatter the trust and financial security of homebuyers and also put homebuyers in a situation where they may face immense stress, anxiety, uncertainty and ultimately be forced to navigate legal channels for seeking recourse. It highlighted that the emotional toll of living in limbo, uncertain about the future of their investment and the stability of their living arrangements cannot be understated.
The court further ruled that compensating wronged homebuyers is not just a matter of rectifying past injustices but also about deterring future misconduct. The Delhi High Court passed the judgment in a plea filed by a homebuyer named Sanjay Raghunath Piplani stating that he is a flat owner in the NBCC Green View Apartments project launched by the NBCC in 2012.