In Brief
IREO Grace Realtech Pvt. Ltd. developed "The Corridors" housing project in Gurgaon. Apartment buyers filed consumer complaints after the developer failed to deliver possession within the contractually promised period. The Supreme Court held that the 42-month delivery period commenced from the Fire Safety NOC approval (27.11.2014), not from Building Plan approval. The Court found the Apartment Buyer's Agreement contained wholly one-sided and unfair terms constituting unfair trade practices under the Consumer Protection Act. While buyers in Phase 1 (with Occupation Certificate) must accept possession with Delay Compensation at 9% p.a., buyers in Phase 2 (without Occupation Certificate) are entitled to full refunds at 9% p.a. simple interest from 27.11.2018. The developer cannot deduct earnest money or other amounts, and must pay 12% default interest if refund is delayed.
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