'Buyer can ask for market rate if flat is not given on time'

Prakash Vishwanath Tiwari had two tenanted rooms in a building at Andheri that were taken up for redevelopment by Monarch and Qureshi Builders. In early 2010, it was agreed that he would be given one flat with a carpet area of 900 sq ft in the redeveloped building called Evershine Cosmic. He was required to pay Rs 1 lakh extra for the allotment of two parking lots and Rs 4,42,666/ towards service tax.
Tiwari sent a letter to the developer on October 1, 2016 asking for possession and demanding interest for the delay. Since no heed was paid, he filed a complaint before the National Commission, stating that Monarch and Quereshi (the developer) and Everest Construction (the builder) would be liable.
Monarch and Qureshi Builders contested the pecuniary jurisdiction of the National Commission as the flat was to be given for free. Also, no specific date was fixed for possession; and delivery was to be given when the building would be complete.
The Commission observed that the progress of the construction had not been disclosed even in the affidavit. The failure to obtain the occupation certificate within a reasonable time-frame was held to be deficiency in service.
The Commission relied on the Supreme Court's judgement in the Kolkata West International City Pvt. Ltd v/s. Devasis Rudra case which observed that a person cannot be made to wait endlessly for possession. Accordingly, the National Commission held both the developer and builder jointly guilty of deficiency in service and ordered them to pay Rs 1,22,92,900 as the market price of the flat. In addition, Tiwari was awarded Rs 2 lakh compensation for mental agony and Rs 25,000 as litigation cost.
Conclusion: A consumer who does not get possession in time can demand market price of the flat in lieu of possession.
(The author is a consumer activist and has won the Govt. of India's National Youth Award for Consumer Protection. His email is jehangir.gai.columnist@outlook.in )