Homebuyers to get compensation for delays in possession of apartment

The National Consumer Disputes Redressal Commission (NCDRC) in a recent verdict held that a homebuyer is entitled to compensation for delays up to the point they receive possession of a completed unit.

Possession that is offered by a builder over an incomplete unit will have no bearing in arriving at compensation, the consumer court said, noting that 'it is inconceivable that a person will not like to take physical possession of his Unit after having made the entire payment.'

The ruling comes as a big relief for homebuyers who have historically avoided the legal route against builders.


Vikas Mittal, after failing to get possession of his flat in a DLF Home Developers project in Delhi, decided to seek redress in the NCDRC and won.

Mittal had booked a unit in the DLF project on September 2009, after depositing a booking amount of Rs 7.5 lakh. The house was to be delivered by September 2012, according to the agreement, within three years of the date of application.

After a delay of almost five years in handing over possession, the court directed the builder to pay a delay compensation at the rate of 6% per annum to the buyer on the amount deposited by him, within six weeks of the order.

Any delay in paying the compensation would attract an interest levy at 9% per annum.

(With inputs from agencies)