NCDRC Orders Godrej Projects to Refund Rs 4 Crore to Homebuyers for Failing to Deliver Promised Amenities

Godrej Projects has been ordered by the NCDRC to refund over Rs 4 crore to homebuyers in five separate cases, citing failure to meet promises made during the sale of flats. The flats, booked in the "Godrej Summit" project in Sector 104, Gurgaon, were sold with the assurance of essential infrastructure, including a 24-metre-wide road that would connect the project to the Dwarka Expressway. However, even after seven years, the promised road and other amenities had not been delivered, leading to significant inconvenience for the buyers.

The NCDRC panel, consisting of presiding member Ram Surat Ram Maurya and member Bharat Kumar Pandya, found Godrej Projects accountable for failing to meet the expectations set out in its marketing materials. Homebuyers had booked the flats between 2012 and 2014, with the understanding that the project would have direct access to the Dwarka Expressway, which was considered a prime feature. This access was to be facilitated by a 24-metre-wide road, and separate entry and exit points were promised for the different parcels (A, B, and C) within the project.

Despite the handover of possession of the flats, the road remained incomplete, and the alternative solutions provided by the developer were inadequate. Instead of the promised 24-metre-wide road, an alternative entrance and exit gate was constructed for Parcel A on a much narrower 10.06-meter-wide road. This road, which was also under encroachment, made it difficult for buyers to access their homes. To further complicate matters, buyers of flats in Parcels B and C were required to pass through Parcel A’s entrance and travel along the narrow road. These modifications fell far short of what had been advertised to the buyers, and the NCDRC ruled that this amounted to a "deficiency in services."

The panel also made it clear that the homebuyers were not at fault for seeking a refund. Their decision to do so, after years of waiting for the promised infrastructure, did not constitute a breach of contract. The NCDRC emphasized that it was the builder's responsibility to ensure the provision of the promised infrastructure, regardless of any delays caused by government authorities or other external factors. The commission rejected the builder’s argument that it was not liable for the road construction as it fell outside the project’s boundaries. The ruling also ordered Godrej Projects to pay 9% interest on the refunded amount, acknowledging the financial burden on the buyers due to the delay.

Godrej Projects, in its defense, claimed that it had been making efforts to complete the road and had even filed a civil writ petition in the Punjab and Haryana High Court to expedite the process. However, the NCDRC was not satisfied with these efforts, stating that the builder could not shift responsibility onto the government or external parties. The commission ruled that the developer had sold the flats based on the promise of access to the Dwarka Expressway, and it was, therefore, the builder’s duty to ensure that the infrastructure was delivered as promised.

In response to the ruling, a spokesperson for Godrej Projects expressed disappointment, particularly with the order to refund money over the non-construction of the road. The spokesperson pointed out that a previous NCDRC ruling for the same project had stated that the developer was not responsible for constructing the road outside the project area. The developer indicated that they were seeking legal advice on filing an appeal against the ruling.

Advocate Aditya Parolia, who represented the homebuyers, welcomed the ruling, stating that while the flats were ready on time, the absence of the promised amenities and infrastructure significantly impacted the value and quality of life for the buyers. He noted that the law allows homebuyers to seek a refund with penal interest in cases where developers fail to deliver on their promises. Advocate Parolia emphasized that this ruling sets an important precedent for other homebuyers facing similar issues.